Your agent, financial advisor and solicitor will be preparing for you settlement, as it’s the final step of your property sale. However, there are a few things you can do as the homeowner to ensure that everything runs smoothly in the lead up to, and on the day of settlement.
- Organise your finances
- Be prepared for a pest and building report or strata report
- Communicate with your conveyancer or solicitor
- Get insurance
- Organise keys, codes and other important information
- Be prepared for the final title search
- Be prepared for the pre-settlement inspection
- Double check your cheques
1. Organise your finances
Stay in touch with your bank if you’re planning on purchasing another home and are needing a new mortgage, a transfer of mortgage or a bridge loan. Your financial advisor will be able to guide you through the all the loan-related elements of the process but ensure to keep up to date on the tasks you have to do.
2. Be prepared for a pest and building report or strata report
Before settlement, it is likely the buyer will want to carry out a pest and building report if your property is a house, or a strata report if it is in an apartment block. Depending on the buyer and the method of sale, they may have also done this prior to exchanging the property.
However, if they request one in the lead-up to settlement, make sure your property is as clean as possible and you have fixed any issues, particularly structural issues. If the report comes up with major problems, depending on the terms of your contract, the purchasers may be able to pull out of their end of the deal.
3. Communicate with your conveyancer or solicitor
Be in frequent communication with your conveyancer or solicitor as they will give you more specific information on what you should do prior to settlement day. They will have closely read all the terms and conditions and can tell you in layman’s terms exactly what your next steps are.
4. Get insurance
You, as the seller, are liable for any damages for the property leading up to settlement, even if you are not living in the property, so be sure to extend your current home and contents insurance. Chat to your insurer about what plan you should be on during settlement so that you are not liable for any surprise costs before the new purchasers move in.
5. Organise keys, codes and other important information
You should make a list of all the important things that the new purchaser will need to know. This includes giving them the keys, any codes for locks and any quirks of the property. You might even have some great tradespeople that know your property well, so you could write their number down.
If you are close with your neighbours, it could be a good idea to write their number down so that the new purchasers can ask them any questions and have a chat with them to build a relationship.
6. Be prepared for the final title search
The final title search is conducted by the buyer’s solicitor to ensure there have been no new dealings with or changes to the property’s title. As settlement can be around 90 days or longer, it is possible that regulations on the property may have changed. It is unlikely that anything will come up, but it is important to be prepared in the off chance that it does. Your solicitor will keep you briefed in on this, as they will have easy access to your title, but it’s important to keep abreast of the situation.
7. Be prepared for the pre-settlement inspection
The pre-settlement inspection is the final time that a buyer will inspect the property before they settle on the home. Make sure to clean your home and keep it in the same condition as when the buyer last saw it and exchanged contracts. Any major issues could lead to the buyers rescinding their offer or extending the settlement period so that you can fix any damages.
8. Double-check your cheques
Finally, make sure all your financial details are correct. This could include bank account numbers, the spelling of your correct legal name, the date and so on. Make sure everything is perfect so that when your solicitors have to deal with the transfer of funds, there will be no issues and you can move onto the next stage of your journey, whether it be purchasing a new house or investing the money elsewhere.
Then you’re done! You’ve handed over the keys and you can move onwards and upwards to your next adventure.
DISCLAIMER – The information provided is for guidance and informational purposes only and does not replace independent business, legal and financial advice which we strongly recommend. Whilst the information is considered true and correct at the date of publication, changes in circumstances after the time of publication may impact the accuracy of the information provided. Atlas will not accept responsibility or liability for any reliance on the blog information, including but not limited to, the accuracy, currency or completeness of any information or links.
