As you already know that buying a property is not always as straight-forward as it may appear. Even settlement often entails complicated procedures and confusions that cause unnecessary delays. Just when you thought that your property settlement has gone according to plan, you may be informed of a particular problem which will cause a delay in your settlement date. Nevertheless, it is important to be aware of the various reasons that cause settlement delays and how to avoid them. Read on!
Causes that Delay a Property Settlement
- Bank Delay: Property settlement is often delayed when there are financial issues involving banks. This can happen due to two reasons – the lender is waiting on their buyer or seller to return documents and is unable to finalize a settlement deadline without them. If the buyer or seller doesn’t complete the necessary paperwork at the right time, it means the bank cannot be ready for settlement.. Hence, make sure that the necessary documents are returned to the bank as soon as possible so that there is enough time to obtain finance approval and settlement. Read their paperwork carefully and ensure that you return all the documents, signed and witnessed correctly and enclose all the documents they have asked for. Most banks will include a check list of what you need to return.
- Late documentation: Another cause of settlement delay is when either party fails to return the signed documentation to the respective party within the proposed time frame. Property settlement involves various steps and sometimes strict dates that must take place within certain time frames. If this does not happen, settlement delays could ultimately occur.
- Property problems: A property buyer should inspect the property before settlement; it’s called a pre-settlement inspection, its the chance to check if the property is in the same condition as it was when signing the contract of sale. Or to ensure that any contractual matters have been completed, if they are not then it maybe possible for the buyer to postpone settlement. In other words, if pre-inspection of the property brings to light some serious property issues, the settlement maybe delayed unless repair or remodelling has been done or any financial compensation has been agreed upon.
- Subject sales: Some purchases rely upon the sale of another property happening prior to or at the same time. If the subject sale property has a delay then each property settlement following could cause a delay on all settlement dates. Simultaneous purchases and sales need to be contracts need to link each property so they settle together to ensure no one becomes homeless!
- Working away: Working away can mean that you are not available to sign documents when they arrive. Always ensure that you speak to your settlement agent before you head back to work just to see if there is anything else you need to sign.
How to Avoid Settlement Delays
- Get organized: When it comes to reading and signing documents, do it as soon as you can. Delaying the return of documents can slow down the settlement process.
- Engage professional settlement agents: Settlement procedures become streamlined the moment you engage settlement agents in Perth. From offering you expert assistance in every step to taking care of all necessary paperwork, having professional settlement agents make the property settlement proceed without unnecessary delays.
- Do your homework before signing the contract: Before signing a contract, speak to your settlement agent, they can assist you with understanding the time frames of the contract, when to book your removalist, when to insure the property and when to cancel services. Engaging a settlement agent to look after your settlement process even before you sign a contract is really great idea. Make sure you know the dates that you need to complete your obligations. If you cant meet the obligations, speak to your Settlement agent or conveyancer for assistance.
- Proper communication: This is the final but one of the most important steps to seamless property settlement experience. Always communicate with your settlement agent or conveyancer. They understand the process and can point you in the right direction if something goes wrong or if you are unsure of what you need to do. Your settlement agent is your best friend in a settlement transaction!
Conclusion: It is not unusual to have delays in a property settlement. After all, buying or selling a property is a legal transaction that involves complicated and timely procedures. While it is essential to keep in mind the above-mentioned ways to avoid settlement delays, it is difficult to overlook the crucial role of expert settlement services in WA in expediting the settlement process and providing satisfaction to both the buyer and seller. To know more about our settlement services, call us today!