{"id":655,"date":"2018-03-29T16:32:32","date_gmt":"2018-03-29T05:32:32","guid":{"rendered":"https:\/\/finance4nurses.com.au\/?p=655"},"modified":"2018-03-29T16:32:32","modified_gmt":"2018-03-29T05:32:32","slug":"negotiating-a-settlement-period","status":"publish","type":"post","link":"https:\/\/finance4nurses.com.au\/negotiating-a-settlement-period\/","title":{"rendered":"Negotiating a settlement period"},"content":{"rendered":"\n
In a perfect world you select a property to buy, complete with white picket fence, and the settlement goes through on the agreed date without a hitch. But as we all know, we don\u2019t live in a perfect world.<\/strong><\/p>\n\n\n\n When you buy or sell a property you go through a \u2018settlement period\u2019, which is the time designated for the buyer to complete payment of the contract before becoming the owner of the home.<\/p>\n\n\n\n Up until the settlement goes through the home is the property of the existing owner.<\/p>\n\n\n\n And with a large home deposit at stake, you\u2019ll want to ensure you choose the right period length.<\/p>\n\n\n\n Generally, settlement periods are 30, 42, 60 or 90 days.<\/p>\n\n\n\n In NSW a 42 day settlement period is the most common, but in most other places around the country it\u2019s 60 days.<\/p>\n\n\n\n Just because it\u2019s common, however, doesn\u2019t mean it\u2019s the best fit for your situation (or the seller\u2019s).<\/p>\n\n\n\n You see, both the buyer and the seller must agree on the settlement period.<\/p>\n\n\n\n However, you may have competing motivations, so this can be tricky.<\/p>\n\n\n\n Whatever the case, just make sure you allow yourself enough time for conveyancing, bank financing approval, organising the move, undertaking requested repairs for the buyer, and negotiating settlements for your other property interests.<\/p>\n\n\n\n Also, keep in mind that if you buy the property at an auction, there will already be a settlement date indicated in the contract.<\/p>\n\n\n\n If you can\u2019t meet that date, chat to the selling agent before signing on the dotted line to see if another date is agreeable.<\/p>\n\n\n\n \u2013 If you\u2019re the seller and you\u2019re still looking for a property to purchase \u2013 You\u2019re a seller who has already found another homeHow much time should I give myself?<\/h3>\n\n\n\n
You might push for a longer settlement period if:<\/h3>\n\n\n\n
\u2013 If you\u2019re a buyer and you haven\u2019t yet sold your own home
\u2013 You\u2019re selling and the buyer has requested you repair something
\u2013 If you have an upcoming event that you want deal with first (wedding, big overseas trip, etc)
\u2013 Someone is going guarantor on the loan or you\u2019re purchasing through a family trust
\u2013 You\u2019re buying off the plan, as the scheme has to be registered with the titles office
\u2013 You need to save more money as a buffer (especially if you\u2019re upgrading or will be renovating).<\/p>\n\n\n\nYou might push for a shorter settlement period when:<\/h3>\n\n\n\n
\u2013 You\u2019re a buyer who has already sold your current home and needs to move quickly
\u2013 A holiday period or big event is coming up and you\u2019re keen to move in beforehand
\u2013 You\u2019d like to undertake work on the property sooner rather than later
\u2013 You need cash flow.<\/p>\n\n\n\nIt\u2019s important to get right<\/h3>\n\n\n\n