{"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

How much time should I give myself?<\/h3>\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

You might push for a longer settlement period if:<\/h3>\n\n\n\n

\u2013 If you\u2019re the seller and you\u2019re still looking for a property to purchase
\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\n

You might push for a shorter settlement period when:<\/h3>\n\n\n\n

\u2013 You\u2019re a seller who has already found another home
\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\n

It\u2019s important to get right<\/h3>\n\n\n\n

One-in-five property settlements in Australia are delayed by about one week<\/a> so it\u2019s important to give yourself a comfortable buffer.<\/p>\n\n\n\n

While each party can request a settlement extension if a delay occurs, that doesn\u2019t mean the other party has to agree.<\/p>\n\n\n\n

This is where it gets a little tricky. Each state and territory has different laws, and every contract differs.<\/p>\n\n\n\n

Queensland\u2019s laws are probably the most stringent. For example, either the buyer or the seller can terminate the contract, sue for damages, and keep\/lose their deposit if the other party is not ready to buy on time.<\/p>\n\n\n\n

Other states have a little bit more leeway.<\/p>\n\n\n\n

In NSW and Tasmania an extra 14 days can be given, in WA and SA buyers are given three days\u2019 grace before penalty interest applies, and in Victoria a seller can immediately start charging a tardy buyer penalty interest.<\/p>\n\n\n\n

Final word<\/h3>\n\n\n\n

So that\u2019s negotiating a settlement period in a nutshell.<\/p>\n\n\n\n

The best news? That\u2019s about as much negotiating as you\u2019ll need to do. Because when it comes to negotiating a loan with a lender, we\u2019ve got you covered.<\/p>\n\n\n\n

If you\u2019d like to find out more about our services, get in touch, we\u2019d love to help you out.<\/p>\n\n\n\n

Disclaimer:<\/strong> The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.<\/p>\n","protected":false},"excerpt":{"rendered":"

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. When you buy or sell a property you go through a \u2018settlement period\u2019, which is the […]<\/p>\n","protected":false},"author":2,"featured_media":656,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"off","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[6],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/finance4nurses.com.au\/wp-json\/wp\/v2\/posts\/655"}],"collection":[{"href":"https:\/\/finance4nurses.com.au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finance4nurses.com.au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finance4nurses.com.au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/finance4nurses.com.au\/wp-json\/wp\/v2\/comments?post=655"}],"version-history":[{"count":0,"href":"https:\/\/finance4nurses.com.au\/wp-json\/wp\/v2\/posts\/655\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finance4nurses.com.au\/wp-json\/wp\/v2\/media\/656"}],"wp:attachment":[{"href":"https:\/\/finance4nurses.com.au\/wp-json\/wp\/v2\/media?parent=655"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finance4nurses.com.au\/wp-json\/wp\/v2\/categories?post=655"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finance4nurses.com.au\/wp-json\/wp\/v2\/tags?post=655"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}