27 March 2020

Things to do before settlement of your home purchase

before settlement of your home purchaseA checklist go through before the settlement of your home

It’s a common statement from home buyers that once a contract has been signed that time appears to stand still.  Everything seems to take forever as you inch closer day by day towards settlement day.  Then suddenly, your finance gets approved and like a tidal wave your ‘to do’ list explodes and gets longer and longer with tasks that need completing before you finalise the purchase and move in.

This is what to do Before settlement of your home. Hewcorp Finance principal broker Owen Kirk has a few tips to help you prepare for settlement and moving day.  Whilst this list is not exhaustive it gives you a range of issues to consider.

Things to do:

  1. If you’re a first home buyer and applied for the First Home Owners Grant (Qld) – liaise with your lawyer, broker or bank to ensure any applicable grant funds have been approved;
  2. Contact your lawyer to confirm all contract conditions have been met and the purchase can proceed towards settlement.  If not, the lawyer will advise on options to resolve any issues.
  3. After the finance has been approved and the contract conditions have been met, the solicitors (buyer and seller) will communicate to arrange settlement that will usually occur on the date specified in the contract. That date may change upon agreement between the parties if needed.
  4. Make sure all deposit funds are available for settlement.  Your lawyer will usually request the funds a few days before settlement to ensure there are no delays.
  5. You’ll need to arrange a number of services in preparation for moving in, so here’s a sample –
  • If you’re renting, ensure you’ve given proper notice to the rental agency and negotiate early termination of the lease/s if applicable;
  • Contact the electricity/gas supplier to arrange connection from settlement day;
  • Ensure you have appropriate home and contents insurance in place, although you should have taken out home insurance at the time of signing the contract;
  • Arrange a pre-settlement inspection with the agent and advise your lawyer urgently if you identify any problems.  Examples include items removed from the home that are considered fixtures or listed in the contract.  New/recent damage to the property etc;
  • Organise and book the removalists if required;
  • You may want the carpets professionally cleaned before you move in and/or have a ‘bond’ style clean of the whole house.  That needs to be arranged before settlement so you aren’t waiting too many days to move in;
  • It’s often difficult to undertake repairs/maintenance/renovations with a house full of furniture.  If you are planning on some carpentry, electrical or other work, it may be prudent to delay your move until the work is completed to minimise disruptions.

On settlement day the funds are paid to the seller and the title (ownership) is transferred to the new owners.  At this point you can contact the agent to collect the keys.

Get in touch!

This blog is intended to give you a broad idea of the many things you need to consider well before settlement day arrives.  Most real estate agents provide their clients with excellent ‘to do’ lists and we recommend you seek information from multiple sources to prevent missing something.

Hewcorp Finance provides professional home, motor vehicle, truck, caravan, marine and asset finance services to customers in Redland Bay, Bayside suburbs, and the greater Brisbane region.  You can follow Owen on LinkedIn LIKE us on Facebook, or view information about home loans on our website.