When looking for a new home there can be a lot of work involved before you actually decide on a property that you like. When you're ready to make an offer and move forward, that is when the formal process begins, culminating in a "settlement." What can you do to simplify this as much as possible and ensure that you are covered?
Know the Process
A property settlement process involves a few different factors. You must ensure that any existing mortgages are clear, that there are no caveats attached to the property, and that all the various elements and clauses included in the offer and acceptance documentation are fulfilled. You've also got to register the transaction with the government in order to make it official.
While you will need to get assistance from qualified conveyancing agents to help you, in the majority of cases you can protect your own interests by doing a certain amount of work yourself in advance and bearing in mind a number of different factors.
Watch the Detail
Remember that you can help to set many of the elements included in the contract with specific wording, and this will have a large bearing on how the settlement proceeds. In all cases, be very clear and precise if you have certain conditions that need to be met, and indicate who is responsible for taking those required actions.
Take Nothing for Granted
Remember that you should take nothing for granted when it comes to the finer details. Certainly, you may have a look at a home and "assume" that some of the fixtures that you see are going to be included in the deal. This is never automatic. You should make careful assessment of the property and clearly itemise all the fixtures, fittings, utilities and so on that you expect to be included in the contract. You should include elements that you think may be obvious, such as air conditioning systems, light fixtures and even carpets.
Avoid Conflicts of Interest
Always make sure that you have an agent who is working for you specifically. Never be tempted simply to use the real estate agent that is actually selling the property, as their primary interest is in serving the needs of the seller.
Get Things in Your Favour
Work closely with your agent to ensure that the settlement contract is as much in your favour as possible. For example, there should be enough time between the date that you receive financial approval (if needed) and the proposed settlement.
Share16 November 2016
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