Pre Settlement Mastered A Comprehensive Guide for Home Sellers

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.

Pre Settlement Mastered               A Comprehensive Guide for Home Sellers

Conditional Sale and Purchase Agreement Signed

Great, now the pre-settlement journey starts. Here is what you do next:

Action STEPSResponsibility
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:

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
Pre Settlement Move Day

2 Weeks to Move Day

action stepsresponsibility
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

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.

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?
No damage to exterial walls and fences
Drainage all working as expected
Electrical sockets working as expected
Sewer working as expected
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
Pre Settlement - Utility Bills

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 Confirmation

Settlement Day!

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
Settlement - List of Things To Do

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!