How to Stay Organised During a Multi-Party Property Settlement

Multi-party property settlements can get complicated fast, which is why a clear plan and a top-notch property settlement agent are your best resources for this particular journey. The settlement for a property can be quite an involved process in itself. When more parties are involved than just a single buyer or seller, such as when there is a shared interest in the property (familial/professional), the settlement process can become more complex. Luckily, KDD’s settlement agents in Perth can help reduce the load and make the experience smoother by assisting with coordination, communication, and the practical management of the settlement. 

Whether with friends, family, or a partner, there is a risk that situations change, requiring the sale of your property. This could be due to separation, friendship fallout between co-owners, or one party needing to move overseas. KDD Conveyancing is a leading settlement agency in Perth, with the expertise and experience in multi-party settlements that follow Western Australian property guidelines. 

Types of multi-party property settlements

One of the most common types of multi-party settlements is called a joint tenancy, which commonly involves a couple buying or selling a property of which they have an undivided share. 

The other form of co-ownership agreement is the tenancy in common type, which is more common when friends join together to buy a property, with or without equal shares, and have independent control of their shares in the property. When these various parties purchase a property together, the co-owner wishing to exit will need to organise with the other co-owners to either buy them out or list the property for sale.

Other types of settlements which involve multiple parties include: 

• Transfer of ownership in which there is a change to your co-ownership agreement from a joint tenancy to tenants in common, a party is added or removed from ownership
• Deceased estate transfers involving all beneficiaries and executors 

How multi-party property settlements work

Settlements involving more parties than just a single buyer or seller work in the same way as standard settlements. As WA Consumer Protection outlines, a settlement agent can: 

• Complete and lodge documents to transfer the Certificate of Title
• Advise you of the total cost of buying or selling a home. 
• Makes enquiries about title, rates and zoning
• Check that all inspections and other special contract conditions are completed before settlement
• Request funds to proceed to settlement
• Arrange payment of transfer duties and any other fees to the relevant government agencies
• Keeps you informed about the progress
• Attend the settlement on your behalf.

However, the process can get a bit more complex for some multi-party sales, especially if there was no agreement at purchase on how the property will be divided if it comes to a sale. With more parties involved, there are extra steps and coordination involved.

If the parties are unable to agree on how the sale proceeds will be divided, you would need to engage a solicitor. This is something your settlement agent is not licensed to do. However, your settlement agent can be there to guide and keep you on track with everything and everyone involved with the settlement.

For multi-party owners who have a history with a particular settlement agent, it is best for all owners to use the same settlement agent. However, it is important to remember, as WA Consumer Protection outlines, settlement agents cannot act for both the buyer and the seller unless both parties give their consent on the appointment form. 

Also, if a settlement agent does act for both the buyer and the seller and a conflict of interest arises, the settlement agent must withdraw service from all parties, which can cause further delays. WA Consumer Protection advises choosing a settlement agent or lawyer who is not also providing services to the other party, even if that particular settlement agent is familiar with your property.

Modern conveniences for multi-party property settlements

The good news is that these days, PEXA, an electronic conveyancing platform, allows for the instant lodging of documents and same-day financial transfers.  KDD Conveyancing also utilises electronic signing options , digital identification verification services, and other steps to significantly ease the process, especially in situations where multiple parties are involved. 

Initial Steps for a WA multi-party settlement

Gather documents early 

To avoid delays, prepare documents early, which your settlement agent will request from you. These include: 

• Documents for identification 
• Home loan statements, if you have a mortgage on the property
• Contract of Sale
• Any relevant documented agreements, such as co-ownership agreements 

Ensure clear and regular communication 

There are strict deadlines for lodging documents and obtaining signatures, so provide documents and information promptly and advise your settlement agent of any issues or important updates so they can assist you as early as possible. Taking the effort to communicate well can help prevent delays in settlement. 

For instance, inform your settlement agent early, well before signing the contract, about any special conditions to be included in the contract, such as fixtures that may be excluded from the sale.

In the case of legal separation (divorce) of co-title owners, to keep things moving along, we recommend contacting your settlement agent early to begin the process of selling your property.  However, if you are unable to agree on how the sale proceeds will be disbursed, your settlement agent will have limitations as to what they can do, and settlement may need to be delayed until an agreement is reached.

Let KDD Conveyancing keep it all together for you

KDD Conveyancing has over 27 years of experience, so we have handled many cases with settlements involving more than one buyer or seller of a property. We thoroughly understand the issues that can arise when multiple parties are involved, can identify them, and can help you prepare for them to prevent delays in settlement. Let us be your guiding star throughout, with the right support to help you finalise your settlement efficiently and stress-free. 

Get in touch today to find out how our trusted, dedicated, and friendly team will get your settlement done.