Buying and Selling property can be stressful, and Settlements can sometimes be complicated!
To book a settlement date, at least 4 parties need to attend (usually electronically) at an agreed time and have all the required documents and payments ready:
Your Bank
Your Conveyancer
The Vendor /Seller (usually their conveyancer)
The Vendors Bank
There are some common reasons that settlements can be delayed:
Your lender is not ready - Lenders have various document requirements depending on the type of transaction. We do our best to ensure that lenders are ready in time and confirm this ahead of your scheduled settlement date, but occasionally they make internal errors and cannot settle on time.
Documents have not been completed - this could be as simple as a signature that has been missed or sometimes documents are lost/delayed in the post. We try to ensure documents are dealt with electronically to avoid issues with posting original hard copy documents, but sometimes this isn't possible and every now and then this causes a delay.
The Vendors Bank is not ready - the vendor needs to notify their bank (if they have a debt over the property) that the property is sold. The bank then needs time to process the Discharge of Mortgage for settlement.
There is a Shortfall of Funds for Settlement - You might be required to pay additional funds to complete settlement, and these funds need to be accessible to the bank/your conveyancer for settlement. Generally we will liaise with your conveyancer to ensure this requirement is satisfied, but sometimes transferring of funds causes unexpected delays.
Dispute about the Property - Every now and then issues arise regarding the condition of the property after a pre-settlement inspection. Depending on what is disputed, a delay can occur.
If your settlement is one of the few that get delayed, it will generally be re-booked to the next time when all the required parties are available. And with the vast majority of settlements taking place electronically, this is usually a simple process.
BOTTOM LINE - When you are booking removalists and other services around moving dates, just keep possible delays in mind.
And, always keep in touch with your Broker!
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