Perth-based settlement agency, C&R Settlements, is encouraging Perth home buyers and sellers to take control of the process to ensure a smooth, stress-free property transaction during the booming property market.
Licensed Conveyancer Claire Bull suggests, “Potential buyers should talk to their mortgage broker about the amount of time it may take to get their finance approved before they sign a contract, as unrealistic timeframes may potentially end in the termination of the contract because finance isn’t approved by the due date.”
During the sale process, it’s common for buyers to seek finance from approved lenders and for sellers to discharge their current mortgage. The bank is central to this process, so if it experiences issues due to the absence of vital documents, an unrealistic settlement period (an expedited settlement of 21 days might be unachievable) or administrative errors the whole process can grind to a halt.
Bull also encourages sellers to be aware. “You may be in the situation where you bought property
when property prices were high, and banks were lending 100%. Now, when it’s time to sell the sale
price is less than the outstanding balance on their loan. This won’t sort itself out, so they need to
speak to their lender and make arrangements for the shortfall”.
Claire’s tips on how to avoid settlement delays:
- Reduce the risk of delays due to bank complications by ensuring you supply all documentation quickly and allow plenty of time in the contract for finance approval and settlement. Return documents promptly, informing your settlement agent of any circumstances that may hinder your ability to complete them on time.
- Sellers need to ensure all plumbing, electrical fixtures, and gas fixtures are in good working order before the final inspection, reducing the need for any last-minute delays to settlements.
- If your transaction is part of a ‘chain’ where your sale is subject to the sale or purchase of another property, more factors are involved, meaning it can easily lead to a settlement delay.
All you can do is be prepared as possible on your end, ensuring that you cannot be held responsible for the delay.