5 Things You Need To Be Aware Of Before Signing The Settlement Contract
Reaching a settlement is usually a good sign that you are one step away from selling your property if you are a seller, and if you are a buyer, this means you are one step away from being the proud owner of a new property. However, before you put your name on the dotted line on a settlement contract, there are a few things you need to do.
1. Get legal help
With a transaction this big you will need to be prepared in understanding what you are getting yourself into. Getting a lawyer involved who will be able to explain the settlement stipulations, your rights, and other implications can save you a whole lot of misunderstanding later. It will also protect you by ensuring that the whole process is fair to both parties.
2. Fix issues that can cause a change in the settlement date
The settlement date can be changed due to various reasons that are sometimes out of your control. Not only delay the process, but it can also become costly. However, taking care of the things that are within your control such as applying for a home loan pre-approval before you put an offer. This also means you must check that all relevant documents are in order without any errors and are submitted in time to avoid delaying the process.
3. Check that everything is in order with the house
You might have checked the house before and even called in the professionals to ensure that your investment is a financially sound one. However, it would be useful to check the property again before the settlement date to ensure that everything is as it should be. This means checking that all items that were listed in the contract are still there to avoid any disappointments once the contract has been signed.
4. Be aware of the financial costs that come with cancelling
You could be reconsidering your decision to purchase or sell the property due to various reasons, but you need to be aware of the financial implications of doing this. If you cancel within the cooling- off period of the contract, you will attract a nominal fee which ranges from 0.2% -0.25% of the contract. Also keep in mind that the cooling-off period will differ from various states and regions, which can range from 2 to 5 days of signing the contract.
5. Secure the necessary documents
Having the necessary documents secured before settlement will make sure that all is smooth sailing when it comes to the property becoming lawfully yours. This means you will have to check your conveyancer or solicitor that everything that is in the Certificate of Title is accurate in terms of the measurements and boundaries. Doing this will help you catch an error’s that can be raised before things are finalised. You can do a title search to give you peace of mind when it comes to knowing that your purchase is legitimate.