So you have sold your home? Congratulations! Now you need to master the pre-settlement process. This comprehensive step-by-step guide, provides insights into the following: Pre-settlement inspections, finances, insurance and everything else in between. Journey into the final handover, to ensure a seamless process.
Conditional Sale and Purchase Agreement Signed
Great, now the pre-settlement journey starts. Here is what you do next:
| Action STEPS | Responsibility |
|---|---|
| Tell your bank | Lawyer |
| Check that all your appliances included in the sale, all lights etc are working | Seller |
| Make arrangements for repairs and maintenace to be done as per agreement | Seller |
| Decide on how you will move. Yourself? Moving company? | Seller |
Unconditional Sale and Purchase Agreement Signed
Even better! Lets move forward:
| ACTION STEPS | RESPONSIBILITY |
|---|---|
| Purchaser pays the deposit to the Agents Trust Account | Agent / Buyer |
| Book a moving company, or ensure required transportation for moving | Seller |
| Make arrangements for children, pets etc for moving day | Seller |
| Organise and agree on a pre-settlement inspection date | Seller |
2 Weeks to Move Day
| action steps | responsibility |
|---|---|
| Prepare settlement legalities, such as settlement statements | Lawyer |
| Arrange a water reading | Lawyer |
| Set up new utilities, phones etc for new home | Seller |
| Arrange house insurance to stop the day after settlement | Seller |
| Cancel lawn mowing, notificaiton of cancellation for rubbish removal, rates | Seller |
1 Week to go
| ACTION STEPS | RESPONSIBILITY |
|---|---|
| Notification of change of address – companies, friends, family etc | Seller |
| Confirm travel arrangements – moving company, organise children, pets | Seller |
| Check all house keys, garage remotes, security alarm instructions for new owner | Seller |
| Buyer will conduct the pre-settlement inspection | Buyer/Seller/Agent |
Note: You remain responsible for the property, chattels and insurance until settlement day. Therefore, cancel your insurance after settlement day.
Pre-Settlement Inspection Checklist
Pre-Inspection Rules
As the buyer conducts a pre-settlement inspection, make sure that your home mirrors the agreed upon conditions during the sale. The vendor warranties says all chattels (ovens, cooktops, dishwashers) and amenities (heating, cooling, security) are in working order. The buyer will therefore likely have a checklist. Here is a likely checklist:
| Pre-settlement inspection item | done? |
|---|---|
| EXTERIOR: | |
| No damage to exterial walls and fences | |
| Drainage all working as expected | |
| Electrical sockets working as expected | |
| Sewer working as expected | |
| INTERIOR: | |
| All taps, light switches and sockets working as expected | |
| No new damage to damage to ceilings, walls, carpets, curtains, windows | |
| Kitchen – Taps, appliances, lights and sockets all work | |
| Bathroom / Toilets – All working as expected | |
| Living areas – Heat pumps, fireplaces working as expected | |
| Laundry – Drainage all working as expected |
Note: It is the vendors obligation to keep the property in the same condition as it was at the time of the agreement was entered into.
Therefore, if any damage occurs to the property between entering into the agreement and signing the agreement, the vendor is required to fix the damage.
Settlement Day!
| ACTION | RESPONSIBILITY |
|---|---|
| Read the power and/or gas and advise your provider of the readings | Seller |
| Receive money from the buyer and repay mortgage | Lawyer |
| Transfer home ownership and attend to legalities such as LINZ, pay water, rates etc | Lawyer |
| Hand over keys to the new owner | Seller/Agent |
| Check that the property is in the same condition as when the atgeement was signed | Seller |
| Check and ensure adherence to any clearning requirements in the agreement | Seller |
Following these steps will help streamline the pre-settlement period, ensuring a successful and stress-free transition into your new chapter. If you have any questions or concerns during this process, don’t hesitate to reach out to Platinum Mortgages! Best of luck in your new home!