With the property market in Perth showing more movement than it has in years, many people are taking advantage and upsizing, downsizing, and relocating to new suburbs.
Buying a new property is one of the most significant financial commitments you’re likely to make in your life, one that automatically comes with increased levels of stress. The stress factor can multiply exponentially when the process experiences unforeseen delays. A delayed settlement can put pressure on the entire sale, especially if the vendor is awaiting the transfer of funds from the sale of their current property to secure their new property. Delayed settlements often happen when a party in the deal can’t meet the settlement date causing stress and the possibility of expensive penalty interest if you’re responsible for the delay.
Read on to learn the top causes of delayed settlements in Perth and how you can cope when your plans go askew.
Difficulty securing finance
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.
How to avoid this settlement delay: 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. A good settlement agency in Perth will help you with this.
Last-minute issues with the final inspection
If you are a buyer, the final inspection is your last chance to identify any issues with the property. For example, if during the inspection you notice a leaking tap or a broken light fitting that was previously said to be ‘in good working order,’ you can insist it gets fixed before settlement. The changes may cause delays.
How to avoid this settlement delay: 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.
As we mentioned, missing documentation can cause delays with financial institutions, and it can also cause problems with government agencies. Title deeds and documents such as the Transfer of Land are crucial to property transactions, and if they’re not returned promptly, delays occur.
How to avoid this settlement delay: return documents promptly, informing your settlement agent of any circumstances that may hinder your ability to complete them on time.
Subject sales – when your transaction is subject to the sale of another property
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.
How to avoid this settlement delay: unfortunately, it might be unrealistic to avoid any delay in these cases. All you can do is be prepared as possible on your end, ensuring that you cannot be held responsible for the delay.
Why choose C&R Settlements to act as your settlement agents in Perth?
Choosing the right settlement agent for your property transaction can be tricky. If you’re a buyer or a seller looking for an experienced settlement agency in Perth, Western Australia, choose C&R Settlements.
With over 50 years of combined experience, our team of passionate and dedicated Perth settlement agents and conveyancers specialise in commercial and residential property. We have settled over 80,000 properties – so once you’re ready to start the property settlement process, we’re here to help.