Settlement Delays

Despite best efforts, sometimes your sale/purchase settlement will be delayed by hours, days or even weeks). This can come from a range of factors, including:

• Last minute paperwork problems

• Issues with finance approval

• The property being settled is not in a tidy state and requires cleaning up

• Occupant can’t/ won’t leave in a timely manner

Short Term Delays

Moving day can be pretty stressful, particularly if the party moving in was also required to move out of their previous home on the same day. Settlement needs to happen, so they have somewhere to sleep.

On rare occasions, a property settlement may need to be delayed for an hour or two, which forces the removalists to take an extended lunch, which the conveyancers, solicitors and banks use to sort out the transaction. If it’s deemed that the settlement can proceed, the removalists will normally begin unloading onto the driveway, until the keys are received by the new owner.

It’s a little bit of double handling, but the new owners will get to move in.

Longer Delays

In cases where the property settlement is postponed for a day or two, some removal companies can simply leave the truck packed at the depot overnight. In the case of Friday settlements, the truck may possibly be held over until the Monday without any problems.

Check with your chosen removalist at the time of booking, to see what back up plans they normally have and if there is a cost associated.

The worst case scenario is that the truck is unloaded into a storage unit until required further. The purchaser needs to also find temporary accommodation until settlement is completed., so this can become costly.

What Can We Do to Minimise Delays?

If selling:

• Ensure the property is neat, tidy and vacant WELL BEFORE settlement day

• Complete any loan discharge forms as soon as they are made available, as financial institutions can have traditionally long processes

• Get all your relevant property keys to your agent as soon as practicable

If buying:

• Conduct your final inspection as early as the agent will allow. This will give parties the most time to sort out minor issues

• Complete any required paperwork (particularly from financial institutions) as soon as possible. They normally have standard timeframes for their process which may be 10 business days at the minimum

• If you can avoid moving on the day of settlement, give yourself a day or two breathing space. This is probably the biggest stress reduction tactic of all

If you have any questions about your situation, contact me via leah@stevensconveyancing.com.au or call 0414 894 031 to discuss.

Please note that the information contained in this article is of a general nature only and does not constitute legal advice. Stevens Conveyancing does not take responsibility for any errors or omissions obtained from the use of this information.