moving house Archives - Focus Property Wealth - Perth Mortgage Broker

Home Settlement Process – What you should know

glennadmin — Mon, 03 Jul 2023 07:27:06 +0000

There’s nothing quite like the buzz of seeing those words in your inbox: Confirmation of settlement of your property purchase.

Settlement day can be both exciting and stressful. But once the formalities are done, it’s all worth it.

If you’re planning a property purchase and are new to how settlement works, here’s a rundown.

Settlement day is when ownership of a property is legally transferred from one party to another. It’s facilitated by your legal and financial representatives, and those of the seller.

The actual date is stipulated in the sales contract.

Settlement periods are generally 30 to 90 days from when the sales contract is signed by both parties. However, settlement can be longer or shorter if mutually agreed upon.

What happens on settlement day?

On settlement day your solicitor or conveyancer meets with your lender and the seller’s representatives to exchange paperwork.

Typically, the buyer and the seller do not need to be present.

Your lender and conveyancer will arrange the following with the seller’s representatives:

The balance of the purchase price, along with any government fees and duties, is settled. All outgoings such as rates, water charges and strata fees are adjusted between the seller and the buyer (you pay for these from the day after settlement).
All necessary legal documents are completed and lodged with the respective agencies.
The certificate of title is transferred to your name and the property is legally transferred to you.

Once settlement is completed, the keys are handed over by the real estate agent and the property is all yours!

How to prepare for settlement?

1) Be organised with the paperwork.

For settlement to run smoothly, it’s important you provide all the necessary paperwork in a timely manner.

For the finance side of things, we’ll walk you through the documentation required for your loan application.

You’ll also need to work with your conveyancer to complete and submit all the necessary documentation to transfer the property title to your name.

Prior to settlement, your conveyancer or solicitor will likely get you to review the settlement statement, which outlines exactly what you will be paying on settlement day.

2) Complete a pre-settlement inspection

You’re entitled to inspect the property in the lead up to settlement to ensure it’s in the same condition as when the sales contract was signed. The last thing you want are hidden surprises when you open the front door.

3) Organise insurance

Make sure you check the date when you need to have your building insurance sorted. It may be from when you sign the sales contract, or by settlement. Rules vary by state and territory.

Ready to get started?

As your mortgage broker, we’ll organise pre-approval on your home loan and get your loan application over the line, so that everything runs smoothly come settlement day.

Get in touch today and let’s chat about your exciting new property purchase.

Please get in touch today! Regards Glenn Biggins.

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances. Your full financial situation will need to be reviewed prior to acceptance of any offer or product. This article does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

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Can you exit an off the plan purchase?

glennadmin — Thu, 14 Feb 2019 01:14:11 +0000

Considering buying a property off the plan? It sounds good in theory, with the possibility of stamp duty concessions and other benefits for first home buyers. But in 2018 there were quite a few people who got caught out by the hidden risks. Read on to find out what you need to know if you’re thinking about buying off the plan this year, or if you’re having second thoughts about an off the plan purchase.

What does ‘buying off the plan’ mean?

When you buy ‘off the plan’, it means the property you’re buying is not built yet. Typically, you’ll only have to pay the deposit upfront, then the balance of the purchase price once the property is completed. Because an off the plan purchase is a new build home, you may qualify for stamp duty exemptions or first home owner concessions, depending on your circumstances. (Check your state or territory’s rules online).

What are the risks?

Lenders may offer conditional approval for off-the plan purchases, but they won’t lend you the funds until they have performed a valuation of the property upon completion. In 2018, many buyers were caught out because their off-the-plan property was valued at less than the agreed purchase price and the lender would not lend the amount required to complete the sale.

There may also be other risks with purchasing an off the plan property, including:

The final product may differ from your expectations.
There may be delays or the development may not proceed. Your deposit should be refunded if this happens, but in the meantime, your money will have been tied up.
If the developer holds on to your deposit (rather than putting it in a trust account), your money may be at risk if the developer goes bankrupt.

Terminating an off-the-plan contract

Terminating an off-the plan contract can be tricky, but there may be grounds to do so. For example, if the vendor has engaged in misleading conduct or the developer doesn’t complete construction before the sunset date, you may be able to terminate the contract.

However, if you want to terminate the contract because a lender has valued the completed property at less than the agreed purchase price, you may have difficulty. You could potentially lose your deposit and may have to compensate the developer for any loss.

Seek legal advice about your options if you wish to terminate an off-the-plan contract. More importantly, ask your solicitor to examine any contract before you sign, to ensure you have appropriate exit clauses in place – more about this below.

Selling before settlement date

Some buyers decide they want to sell the property before settlement. This is legal under most off-the-plan contracts and can prove to be lucrative if the property’s value has gone up, but there are risks involved.

Key considerations:

Have your conveyancer check that the contract allows for re-sales prior to settlement.
Speak to your accountant about the tax implications of reselling the property (you’ll likely be up for capital gains tax).
You’ll have to pay stamp duty, additional legal fees and any agent’s commission, so be sure to factor these costs into your calculations.
If you find a buyer but your contract with them falls through, you’ll still be bound to settle with the developer.
Ask the developer to include a clause in the contract that allows you to terminate it if the completed property is valued at less than the agreed price.

Talk with me before you get started

If you do decide to go ahead with your off the plan purchase, I can help to organise pre-approval on your home loan and help you choose a lender that will work with you on this type of purchase. I can also refer you to a reliable conveyancer or solicitor to help you avoid the legal pitfalls. If you’re having difficulty organising finance to complete an off the plan purchase, please get in touch asap!

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5 Tips to take the stress out of settlement day

glennadmin — Mon, 26 Feb 2018 12:40:24 +0000

You’ve found your dream property, had your offer accepted and the all-important settlement day is the last hurdle to overcome. The anticipation has been building for weeks!

Settlement day can be both exciting and stressful, as sometimes things can go wrong. In this article, we offer some tips about settlement day and explain how we, as your mortgage broker, can help ensure everything goes to plan. But first let’s explain about settlement day and how it all works.

What is settlement day?

Settlement day is the day ownership of a property is legally transferred from one party to another – in other words, the day you get the keys to your new home! There are all sorts of regulations and procedures that must be followed for this to happen, but your conveyancer will take care of the finer details and we’ll work with them to ensure your finance is all set. The actual date of settlement date will be outlined in the Sales Contract - it’s a good idea to discuss the timing with us, your mortgage broker, and get your conveyancer to review the contract before you sign it. If you don’t have a conveyancer, please ask us for a referral.

What happens on settlement day?

By the time settlement day rolls around, you should have undertaken a final inspection of the property, organised building insurance (this should be done as soon as the seller signs the contract) and your conveyancer will have taken you through all the necessary documentation to transfer the property title to you. On the big day, a representative from your home loan provider and your conveyancer will meet with the seller’s representatives – you aren’t required to attend. Your conveyancer will receive the property title and register you as the new owner, cheques will be exchanged, and any government fees and duties paid. Once the paperwork is completed, you will be notified of a successful settlement and then get the keys and officially become the new owner.

Now for those tips about ensuring settlement day goes smoothly!

Tip #1: See your mortgage broker early

To ensure a hassle free settlement day, it’s important to seek professional advice from experts who understand the process. Talk to us before you start looking for your property, so we can organise pre-approval of your home loan with your preferred lender. It’s also a good idea to talk with us about the property you choose, so we can ensure the lender is happy with the price and value and will grant final loan approval. That way, when it’s time to sign the sales contract, you’ll be confident your finance is secured. We hold your hand and take you through every step right through to settlement and beyond, so you can feel confident that things go smoothly on the day!

"We hold your hand and take you through every step right through to settlement and beyond"

Tip #2: Find a reputable conveyancer

You’ll need a reliable conveyancer to oversee the complex legal requirements and paperwork involved in a property purchase. Among other tasks, your conveyancer will ensure there is enough time between the finance approval date and the nominated settlement date. Ask friends and family for a recommendation and be sure to check the conveyancer’s reviews. We can also offer a referral to a reliable conveyancer if needed.

Tip #3: Negotiate a date that works for you

It’s important to remember that you have the power to negotiate the settlement period with the seller before signing the contract. Even if you’re buying at auction and the settlement period is in the contract, you may be able to liaise with the seller’s agent to see if the seller would be open to a different date. This could be useful if you’re moving from one home to another and need to plan the timeframe.

The settlement period begins the day the contract is signed and is usually between 30 and 90 days. So, the settlement period should also allow enough time for your finance to go through, searches to be undertaken and paperwork to be completed. Keep in mind that it can take time for your lender to issue and approve the paperwork – so check back with us about a suitable settlement period for your loan.

Tip #4: Be vigilant about the paperwork (and we will be too!)

There’s often a lot of paperwork involved in a property purchase. If you’re late at returning paperwork to us or you fail to sign a page or tick a box, it may delay loan approval and there may also be issues with settlement if you delay signing documents from your conveyancer. Pay attention to detail when filling out the paperwork and return it as soon as you are asked to by your broker or conveyancer. We have detailed processes to ensure no paperwork gets missed, but it pays to know what you are signing and when at your end as well!

Tip #5: Enjoy the ride

You’re bound to feel nervous as settlement day approaches. But try not to stress too much and enjoy the process. If you have a team of professionals on your side and you’re properly organised, things are likely to go to plan. Remember, our role as your mortgage and finance broker is to help ensure your settlement day goes smoothly, so please get in touch early in the purchasing process and we’ll be there to help you every step of the way!

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. All loans are subject to lenders terms and conditions – fees, charges and eligibility criteria apply.

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Top things to do before moving house

Focus Property Wealth — Mon, 03 Oct 2016 08:35:25 +0000

What you need to do before moving house, we’ve put together the top checklist of things to do before you move house:

1) Connect Utilities

Disconnecting and connecting utilities take a few days if not a few weeks, and you don’t want to be charged for utilities you’re not using once you move. Internet, energy and gas are the top three to organise asap and are easy to do by contacting your provider. We all know living without internet can be extremely frustrating

2) Update your address

Notify the post office immediately of your new address or set up a redirection service for the first few months, giving you more time to contact businesses and government bodies to make sure your mail is going to the correct place. Some top places we forget are: insurance, superannuation, banks and the electoral roll.
3) Update your insurance

When you move house it’s important to contact your insurance provider to update your home and content insurance and also ensure you are covered during your move if anything gets damaged.

4) Organise spare keys
Before you move have extra keys cut and have a spare with a family member or friends

5) Repairs

Especially with rentals, it’s important to ensure everything is in working order before you move out. Organise and get repairs done to ensure you will get your bond back and have everything in working order for your new house owner or next tenant.

6) Measure your furniture!

Try and schedule a visit of your new home to get accurate measurements of the main rooms to ensure you’re furniture will fit. Also measure the width of the doors, so you know what will (and won’t) fit through them and what you will need to disassemble.
Focus Property Wealth can help you make the move contact us any time.

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How to take the stress out of moving house

Focus Property Wealth — Mon, 03 Oct 2016 07:56:01 +0000

Take the stress out of moving house
We all know moving house is one of the most stressful things we can do, however there are ways to plan and minimise stress before your move:

1) Budget First

There are many costs associated with moving house so it’s important to budget these expenses so you’re not surprised and out of pocket come moving day.
There are ways to save money during your move by comparing quotes from removalists and conveyancing as well as throwing out all your unwanted possessions therefore reducing what you need to move!

2) Hire Help

There are many options when it comes to moving. You can DIY of course with the help of friends, but there are also options sure as hiring your own truck (that don’t need a special truck licence). Apps such as airtasker also allow you to cheaply get help packing, moving and unpacking (and even cleaning!) at a fraction of the price of normal removalists

3) Be Flexible
Always allow for more time than you think you’ll need and schedule your time accordingly. With so many parties involved with moving house things will not always go to plan, so it is important to be flexible to keep your stress levels down.

4) Kids and pets
Have a plan for children and pets to be looked after the day you move so you can focus on the move itself. Also allowing an extra few days to ensure the new house is pet proof and safe before they move back could be handy too!

5) Visit where you’re moving to
Regularly visiting where you’re moving to can prepare you for your first few days in your new neighbourhood. Knowing where local shops and amenities can be handy when you haven’t unpacked (or can’t find) food and items you may need straight away.

6) A moving day survival kit

It’s a good idea to put all your necessity items in one box and transport with you. Items such as important documents (like passports), phone chargers, toiletries, snacks and water can help you get through the day more easily!

Focus Property Wealth can help you contact us

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