Previously, we wrote about Settlement Day and what occurs. Today we thought we would share a little about settlement problems that can go wrong, and how to avoid any that could lead to delays.
But first up, the easy tip to remember is … there’s no such thing as “too organised” when it comes to settlements. If you can find yourself a Conveyancer with slight OCD tendencies, that’s a real good start!
What settlement problems could possibly go wrong?
Well, that’s quite a can of worms we’re opening now.
- Funds not transferred in time
- Documents not received in time
- Other parties bank not ready
- Documents signed or witnessed incorrectly
- Documents prepared incorrectly
- A caveat gets lodged within 24 hours of settlement
- The property being subject to a lift and replace Encumbrance
- Finance approval received late
Most of the time delays are caused by banks either not having enough time or missing something when verifying the file for settlement.
Luckily, if there’s going to be a delay in settlement, we’d normally find out about it a few days prior. Often this will mean we can attempt a solution straight away and get the settlement time back on track.
Prepare
With all the best intentions in the world, there may still be some unforeseeable settlement problems that cause a delay. For this reason, it’s best to have your removalist truck booked tentatively and confirm with them a day or two before. If you can organise the day off work, that’s also handy.
Same applies to Vendors using their sale proceeds to collect a new car or boat. We recommend planning to collect the next business day after settlement, just to be on the safe side.
Some quick tips
To maximise your chances of a smooth and punctual settlement, keep the following tips in mind:
- Sign documents as soon as you’re confident in doing so.
- For any documents the bank/broker needs, post them by express post and keep the tracking record.
- Keep your Conveyancer up to date (if we know you’ve returned your loan documents, we can track them, keep on top of them and make sure they don’t get “lost”).
As always, your best shot at minimising settlement problems and avoiding delays isto use a great Conveyancer. To talk about how we can best represent you, contact ushere.
There’s also more info here on what can go wrong for settlements!
