5 tips to prepare for your property settlement

A property settlement isn’t all about lawyers, banks, agents and conveyancers. It’s about making sure you are completely satisfied with the property before handing over your hard-earned cash. Here are five things you should remember to do before the big day.

Insurance

Haven’t organised insurance yet? Get it now! It can be a risky practice to rely on the vendor’s insurance cover (or lack thereof) if something happens to the property during the period from exchange to settlement. Having adequate insurance in place will give you peace of mind.

Keys, codes and passes

Make sure you organise who has the keys and when you can collect them from the agent or your legal representative. Also, make sure you have the alarm codes (if any) and instruction manuals. Some purchasers want to collect the keys that day from the agent; others have the keys delivered to their solicitor after settlement. By sorting out the logistics beforehand, you can enjoy your property sooner (without setting off any house alarms!).

Final inspection

This is probably the most important inspection you will undertake, so you should organise it during daylight hours as close as possible to settlement and really take your time with it. Has any debris been left behind? Do the fittings and fixtures remain? Are the contractual inclusions actually in place? Have the exclusions been disposed of? Is the property in the same state of repair as when you signed the contract? If in doubt about any of these aspects, be sure to raise it with the agent and vendor as soon as possible. It is, after all, your right to have these things in accordance with the contract.

Final title search

Just like a final inspection, a final title search will inform you if there have been any dealings with or new interests in the legal ownership of the property. After all, you can’t buy something from someone if they don’t own it. You’ll also need to remove any caveat you’ve placed on the title to enable the change of ownership to take place.

Cheque directions

Your legal advisor and lender will organise the cheques on your behalf, but it’s up to you to make sure the settlement amounts and payees are correct before property settlement. Also, make sure the cheques have correct spellings – incorrectly issued non-negotiable bank cheques can hold up and delay a settlement, and that’s the last thing you want!

By following these simple tips, you can prepare yourself for the exciting “It settled!” phone call and be on your way to enjoying your new property.