Can you move in on settlement day?

Buying a home comes with much anticipation. You may be imagining exactly where you'll put your furniture and picking the best window for your houseplants.

Many buyers are raring to get into their new homes, but before you go booking removalists for settlement day, there are a few things you should consider.

What is settlement day?

Let's start at the beginning. Settlement day is the day ownership of the property is official transferred.

The buyer, usually through their solicitor or conveyancer, pays the purchase price to the seller, via their representative. As the buyer, this means your deposit is transferred to the seller and, if you've taken out a loan to fund the rest, the lender will stump up its share through its representative.

The title deeds and the documents that will see the title transferred to you are exchanged. If you've got a mortgage for the property, your representative will release these to the lender's representative as security for your loan.

Once the title is transferred into your name, the keys are handed over and the property is effectively yours (albeit the lender keeps the title deeds until you pay off your loan).

Sounds easy enough? Unfortunately, the process can be fraught with hitches.

See also: How long should the property settlement process be?

What can go wrong on settlement day?

Property settlements proceed without a problem every day, but there are some common issues than can cause delays, including:

• A property not passing its final inspection

• Misspelled names or addresses

• Missing documents

• Documents not signed or witnessed correctly

• Insufficient funds or transfer delays

• Lender issues including delays in having paperwork in place

• Title anomalies

No matter how prepared you think you are for property settlement, there are a lot of moving parts that generally hinge on several parties. Simply put, things can go wrong.

Timing

When property settlements were done through people meeting in person and swapping papers between each other, property settlements tended to take place in the middle of the day.

Nowadays, if a bank is involved, settlement may be required to take place after 2pm. With the electronic platforms now widely used for settlement transactions, some settlements may not occur until the end of a business day.

By the time you can collect keys for the home, it may be too late in the day to start moving your gear in, particularly if you've hired removalists. If you have teed them up for settlement day, they may charge you a hefty extra cost for unloading your possessions after hours.

Similarly, if settlement is delayed by a day or more, you could be charged storage fees until such time the home is officially yours.

When is it best to move into your new home?

People involved in property settlements day in, day out recommend new homeowners cool their heels a little when it comes to organising their moving date.

They advise home buyers to make arrangements so their move occurs the day after settlement. Many removalist companies advise exactly the same thing, so it's best to take note from the experts.

But, if you must move on settlement day, there are steps you could take:

• Ask the seller if they'll agree to bring settlement forward by one day

• Ask the seller if they're agreeable to granting access prior to settlement

• Ask the seller if they're agreeable to granting partial access prior to settlement, to the garage for instance

The seller isn't obliged to agree to any request. It might not suit their own moving plans, after all. However, it's likely worth asking.

Some sellers may allow your possessions to be unloaded and stored in a garage or shed until you take formal possession.

If you're renting a property prior to moving into your own home, don't cut yourself short on your lease. Leave a bit of extra time after settlement day in case there's an unforeseen delay and you need to remain where you are for an extra day or two. Extra wiggle room also allows you more time when the property has been emptied to ensure it's been left in a good condition and give you the best chance of having your bond returned.

Tips if you're planning to moving on settlement day

Settlement tips

• Engage experienced solicitors or conveyancers to handle your settlement

• Double check all documents yourself to ensure spelling is correct and forms are completed

• Organise for the final inspection of the property to occur a week before settlement day That way, if the buyer is not satisfied with something, the required changes can be attended to without delaying settlement. If you're the seller, ensure everything is as close as possible to the conditions outlined on the sale agreement

• Try to push for the settlement time to be as early as possible in the dayThis effectively gives all parties more time to deal with any unexpected issues that may arise

See also: Conveyancing checklist for home buyers and sellers

Moving tips

• Declutter as much as possible before moving

• Begin packing early and pack everything before settlement day

• Arrange when and where you can collect the keys This is often done by contacting the agent.

• Provide removalists with details on parking and access to the property

• For apartment buildings, consult the body corporate It may need to provide details such as what entrances and lifts can be used by tradespeople and arrange for extra swipe cards or keycodes to be provided

• Let removalists know the settlement time so they can plan their schedule

• Label boxes clearly and with colour or number codes for each room in the new homeThat way removalists can leave the boxes in the relevant room. Also, code large items the same way so they can be set down in the right location.

• Keep aside a suitcase or overnight bag with clothes and essentials In the event settlement is delayed, you'll have all you need to get by for a night or two.

Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Important Information and Comparison Rate Warning

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