Some tips for settlement smartly – Is Tuesday better than Friday

THE most common day to settle a property is Friday, chosen by purchasers in order to move into their new home over the weekend — however, the REIQ advises that purchasers may want to consider a either a settlement in the early half of the week.

Settlement is the day when the property ownership passes from the seller to you and the day when the balance of funds is due in full. Settlement is when the purchaser receives the title to the property. It is also the last day the seller is responsible for outgoings, such as rates, water and sewage. The purchaser takes over the outgoings after settlement.

Settlement is also the day when you can collect the keys from your agent. As a risk minimization strategy you may want to consider changing the locks.

Five settlement tips to consider:

1. Hiccups: The number-one reason that it’s a good idea to schedule settlement early is to build in some time to manage any hiccups that can arise in the lead-up to settlement and still achieve the same move-in date on the Saturday. 
2. Cheaper Removalists: Another excellent reason you may want to schedule your settlement on Monday to Wednesday and potentially move during the week is that often removalists will charge cheaper fees. 
3. Pre-settlement inspection: Prior to settlement is scheduled to take place it is a good idea for the buyer to conduct a pre-settlement inspection. If the contract doesn’t contain a pre-inspection term then it’s a good idea to request it. This will allow you to ensure everything in the property is as described in the contract.
4. Insurance: Don’t make the mistake of thinking that insurance is only required from the time you become the owner.
5. Faster (midweek) Conveyancing: The busiest days for settlements are Thursdays and Fridays and some firms can be doing dozens of settlements in one day. Reduce the risk of being impacted by the domino effect (where if something goes wrong in someone else’s settlement yours may not happen on time) by choosing a less busy day.

Source: REIQ Realestate