Navigating Common Property Settlement Challenges: Tips and Strategies from the KDD Conveyancing Team

At KDD Conveyancing, we always advise that to finalise the sale and purchase of a property, there is a settlement period of typically 30-90 days to allow for the completion of various complex and intricate property conveyancing processes. The buyer and seller agree to the settlement period in the contract of sale. On the settlement date, the property title is officially transferred to the buyer, and the purchase funds are paid to the seller. Even allowing for this period to conduct these official processes, some property settlements can face delays or unexpected issues. Engaging property conveyancing professionals, like KDD Conveyancing, can help with the significant and careful planning and coordination to ensure all parties fulfil their obligations by the deadline.

Having a team of property settlement experts, such as a property conveyancer or solicitor, can be invaluable to ensuring these potential pitfalls can be preempted and addressed early in the settlement process. The experienced KDD Conveyancing Services team can help navigate these challenges, with over 30 years of experience, specialising in understanding local Perth residential needs and the property landscape.

Potential challenges during the property settlement period

Property Conveyancing: Finance issues

Arrange loan approval for the property funds well in advance, as there can be delays in this process from the bank. The bank may require further documents, and there may be discrepancies in documents that need to be fixed. Maintain regular communication with your lender so that you can address any additional requirements as soon as they arise.

Arrange an emergency buffer of funds in case you have under-budgeted or unexpected costs arise.

Property Conveyancing: Problems with documentation

Paperwork that is filled out incorrectly or incompletely will cause delays, as will missing signatures or additional ID verification. Ensuring your names match across all primary forms of your identification is one way of preventing such delays. Check the accuracy of your documentation and send it to your conveyancers as early as possible so they can review it for you and identify any issues to resolve promptly. 

Engaging with conveyancers that have embraced technology with digital conveyancing is also helping reducethe stresses that can occur with human error. Digital conveyancing platform PEXA streamlines the final stage of the property settlement process with automated document retrieval, online signatures and pre-loaded information into forms. 

Property Conveyancing: Title and ownership complications

One of the main responsibilities of a conveyancer is to review property documents meticulously and during their due diligence, they may discover details about title discrepancies, encumbrances and caveats, which can cause complications and delays to resolve. 

Tenanted properties should also be addressed in the contract so that the agreement is clear and binding. For example, if it is expected that the tenant will remain after the sale, a condition should be included in the contract to this effect. It’s always best to check and resolve these before settlement.  

Property Conveyancing: Building and pest report surprises

Many buyers choose to include a building and pest inspection condition in their contract.  Additionally, a pre-settlement inspection may also be possible for the buyer to ensure that the property is in the condition as it was when it was sold and as per the contract. However, unexpected defects, incomplete repairs, or damage found during these inspections can lead to renegotiation or delays. Having a conveyancer to explain your rights and obligations means issues can be negotiated and resolved in time for settlement day. 

Property Settlement: Bank delays

Banks are busy and often have competing priorities, especially during peak periods such as near holidays, leading to longer-than-usual processing times. Examples of issues that may arise include document errors, additional verifications, and delays in discharging the mortgage.  The best thing to do is to start the loan approval process with your bank as early as possible.

Property Settlement: Unexpected and outstanding fees 

All rates and other charges will be adjusted between buyer and seller at settlement. However, sometimes these calculations are not available until quite close to settlement. Levies for strata properties can add a further layer of complexity. Ensuring that you have budgeted correctly for these costs means you won’t be left short on settlement day.

Your settlement agent will apportion the rates between each party ahead of settlement day. 

Having the settlement agent as a third party to clarify who is responsible for paying which fees can also help smooth out the process and avoid disagreements. 

KDD Conveyancing’s tips to avoid property settlement setbacks

Being prepared, proactive, prompt and good communication are keys to a smooth settlement and minimising the risk of delays.

• Have your finances fully approved early and budget for extra funds for any unforeseen expenses.
  
• Conduct a final pre-settlement inspection at least a week before settlement to identify any concerns.
  
• Communicate regularly with your conveyancer and broker, and keep documentation of this communication so there is a record of what was discussed in case it needs to be referred back to. This means asking them anything you are unsure of promptly, before it becomes an even bigger and more time-intensive problem to fix.
  
• Sign all documents and ensure their accuracy and submit them as early as possible, not the day before settlement. This allows all parties time to review documents and address any issues early.

Proactive KDD Conveyancing Services for Residential and Commercial Property Settlements

As your local Perth conveyancing experts with over 60 years of combined experience settling properties in the area, KDD’s conveyancers understand the roadblocks that can occur and when. This insight has informed KDD’s proactive approach, keeping clients informed every step of the way, identifying and raising any issues and resolving them promptly to prevent any delays in settlement. 

We understand the settlement process can be complex and that you don’t know what you don’t know, so we will guide and support you to minimise risks and ensure your property settlement is stress-free and completed on time. 

Contact KDD Conveyancing for Expert Advice and Management of your Property Settlement

Contact KDD Conveyancing Services now to discuss your conveyancing needs and the process involved early to ensure you are well prepared for a successful and timely property settlement.