Here you are, having found the property you want and agreed upon a price. The next significant step is the settlement process, which actually comprises numerous steps.
Navigating the settlement process can feel overwhelming, complicated, and stressful. However, correcting the very first step can significantly reduce or even entirely avoid these challenging emotions.
The first step towards settlement.
Now, you may think I’m biased, but the first step to take towards settlement is to phone your Conveyancer. Ideally, you would have contacted a Conveyancer way back when you first decided you were going to look for a property to purchase. So you should already have a relationship of some kind with the Conveyancer who is going to guide you through this process.
If you haven’t, stop reading this blog and contact us straight away! It’s no exaggeration to say that you’re in immediate danger if you haven’t organised your Conveyancer at this point. Remember, your Conveyancer is your team-mate. They’re going to use their knowledge and experience to watch your back throughout this.
What’s next?
Okay, so now that you’re Conveyancer is in the loop, things are going to be much easier for you.
Next is to get the bank on board. Out of everyone involved, your lender or Broker needs the most time to line up all the ducks. If you already have pre-approval, you might only be looking at 2 – 3 weeks for formal approval to come through. Once received, allow at least 2 weeks for the documents to be prepared, sent out, signed by you, returned, and then processed by the lender.
So how long should I expect all up?
It was once commonly believed that a 6 week timeframe was reasonable to anticipate, and in many cases, this might still hold true today. However, in South Australia now, 30 days is generally the most common timeframe for settlements. This includes 2 weeks for finance approval and another 2 weeks for settlement preparation.
Who decides settlement date?
The settlement date isn’t decided by any single party, it’s negotiated between all parties involved.. Some parties may have more weight in the negotiations. But if handled professionally by everyone, then a date that is mutually acceptable for everyone is the goal. If the Vendor is purchasing another property, they may be quite adamant about the date they need. Therefore, having an excellent Conveyancer on your side is crucial to ensure your best interests are also taken into account.
What can I do to keep things on track?
There’s a number of things you can do to give your settlement the best chance of occurring swiftly and on the proposed date. Your Conveyancer will walk you through these as you go.
The most crucial task is to manage the contract efficiently. Once signed, promptly return it to the lender or broker, as it’s necessary for the finance application’s approval. To keep that settlement date on track, make sure you’re not delaying the finance approval by not giving the lender what they need to finalise things. As soon as they request additional information from you, make every effort to send it through promptly.
So we’re there then?
Almost. There’s a number of dates for special conditions in the contract that your Conveyancer will monitor. If required, they’ll request the necessary extensions. These requests could range from formal approval to completing works, or arranging a pest and building inspection, and, of course, determining the settlement date itself. More information on conditional Contracts can be found here.
So hopefully this has given you a broad view of what to expect. Obviously, there is a lot more involved. But you should now have an overview of the main points and how to put yourself in the best position for a painless and even joyous experience.
There’s some good factual information at this SA Government site, but if you’re after a more personal and less boring experience, feel free to drop us a line. We’ll be happy to share our knowledge with you.