Ep 247: The Ultimate Settlement Guide – Navigating the Steps, Paperwork, Timelines & Traps to a Successful Settlement
Ep 247: The Ultimate Settlement Guide – Navigating the Steps, Paperwork, Timelines & Traps to a Successful Settlement
3.47 – Dave kicks off with the first question… “what is settlement?”
10.45 – Cate discusses the mystique of the settlement process on settlement day
15.53 – What is a pre-settlement inspection? And how do buyers tackle any issues they uncover?
20.12 – Next week’s sneak peak … a listener question about A-grade properties versus A-grade suburbs
26.16 – How quickly can a bank manage an urgent settlement?
28.08 – Mike: “What are some of the horror stories you both have seen?”
47.10 – Gold Nuggets
Dave hosts this time! He opens the episode with the obvious question, “what is settlement?”
Did you know that settlement dates are completely negotiable? And did you know that some people conduct their own conveyancing?, (although the Trio don’t recommend this, as it involves a lot of risks and responsibilities.) If you do your own conveyancing, you will need to research what is required and the relevant legislation.
Like real estate licences, they are state and territory based. Cate shares some of the challenges associated with cheap, unreliable conveyancers.
Physically, how does settlement happen?
Cate and Dave weigh in, and Dave explains how settlements hinge firmly around the broker and the banks.
Settlement day is a bit of a magical event. Cate talks through the parties who are involved, how long the actual settlement takes, how it’s facilitated and how conveyancers conducted settlements before our online portal, PEXA existed.
What is an “ideal” settlement day? What does it look like?
The Trio canvas the steps and the paperwork required to get to settlement. From legal transfers to ‘funds to complete’, bank loan documentation certification and pre-settlement inspections. There are many steps that are important in the lead up to settlement day.
When are short settlements advantageous? And why would a buyer consider making a short settlement? Cate explains that many buyers think that a shrewd offer with a short settlement is the key to tough negotiating, but sometimes this isn’t the best way to drive a good bargain.
What can go wrong at settlement? Tune in to find out!
What causes delays? Dave and Cate step through a range of issues that can threaten a smooth settlement, from finance to lost titles, to late subdivisions, caveats and lost titles. There are many elements to manage and be aware of when it comes to property settlements.
What happens if the purchaser is at fault and can’t give the vendor confidence that they can settle?The answer to this question can be quite ugly, but it’s important that purchasers appreciate the gravity of the situation when it comes to obtaining finance in time.
And let’s assume settlement goes to plan…. what are the next steps? Dave steps listeners through the nitty gritty that borrowers should check straight after offset to make sure they are on course with their mortgage strategy and loan facilities.
…. and our Gold Nuggets!
Mike Mortlock’s gold nugget: “Don’t do it yourself! And book the truck for the day after settlement!”
Cate Bakos’s gold nugget: “Make sure you’ve got a really good checklist! Give us a yell if you’d like a checklist emailed over to you.”
Resources:
If you enjoyed this episode, you may also enjoy these:
29 Congenial negotiation tactics and how to apply them in the right situation
103 Conveyancing 101 – why you need a great solicitor or conveyancer in your corner