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Settlement Problems – You can avoid them.

In my last blog, I wrote about Settlement Day and what occurs. Today I thought I should share a little about what can go wrong on Settlement Day, and more importantly, how to avoid any settlement problems 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 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 having all documentation finalised
  • Bank cheques drawn for settlement are incorrect
  • Documents have been signed or witnessed incorrectly
  • Documents have been prepared incorrectly
  • A caveat gets lodged within 24 hours of settlement taking place and not detected until the morning of settlement
  • The property being subject to an Encumbrance
  • Finance approval is late coming through.

Most of the time, any delays are usually caused by the banks either not having enough time to get the file processed or missing something when they are verifying it 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.

Be Prepared.

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 as well, that’s also handy.

Same goes for Vendors who are using their sale proceeds to go and pick up a new car or boat (you’d be amazed the number of times it happens!). We recommend only ever to plan to collect the business day after settlement is scheduled for, 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 I know you’ve sent your signed loan documents back to the bank, I 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 is to use a great Conveyancer. To talk about how we can best represent you, contact us here

Domian.com have a nice, simple article on stress-free settlements here.

There’s also some good info about what can go wrong in settlements here.