The Two Settlement Complaints I Hear Most Often From Buyers
After more than 20 years of helping clients with property sales and purchases at Conveyancing Shop Lawyers, I have heard just about every possible settlement complaint. There are certainly some serious issues that can arise when buying a property, but interestingly, the complaints I hear most often are usually much more practical. They are the things that can turn what should be an exciting day into a frustrating one.
The two that come up time and time again are the condition the house has been left in and the expectation that the keys will be available first thing on settlement day.
Number 1: The house has been left dirty
This has to be number one. You have spent months looking for a home, negotiated the purchase, signed the agreement and finally made it to settlement day. You are excited to move into your new house and start making it your own, only to open the door and discover that it really needs a good clean.
I have heard buyers complain about grime and dirt underneath where the fridge and washing machine have been sitting for the last ten years, ovens that have clearly not been cleaned for a very long time, and showers with hair and gunk sitting in the drain. Then there are the less pleasant surprises, such as mouse droppings in areas that have been hidden behind appliances or cupboards.
To be fair to vendors, I don't think most people deliberately leave their house in a dirty state. Moving is stressful and it nearly always takes longer than expected. There is packing to finish, furniture to move, children to organise and a hundred other things that need to be done. Cleaning tends to be the job that gets left until everything else is finished, and by then there may simply not be enough time to do it properly.
There is also a big difference between giving a house a quick clean and doing a proper deep clean. When a house is empty, you suddenly see all the places that have been hidden by furniture and appliances for years. That is when the dust, grime and accumulated dirt become very obvious.
You are spending hundreds of thousands of dollars, or perhaps millions, on your new home. In the overall cost of buying a property, spending a few hundred dollars on a professional clean is relatively small, and I think it can make a huge difference to how you feel when you move in.
If the property is going to be vacant, you could arrange for your own cleaner to come in around settlement. Alternatively, if having the property professionally cleaned is important to you, you could negotiate for the vendor to arrange a commercial clean as part of the sale. If you do this, make sure the requirement is properly agreed and included in the sale and purchase agreement rather than relying on a verbal promise.
There is something very satisfying about walking into your new home when it is empty, clean and fresh, knowing that you can move your furniture in without first having to scrub someone else's shower or clean years of grime from underneath the fridge. You have just bought a new home, and although it isn't actually a new house, it can certainly feel like a fresh start.
Number 2: “I thought I would get the keys first thing!”
The second issue I hear regularly is buyers being surprised that they cannot get into their new home first thing on settlement day. It is understandable. You have booked the removal truck for 9am, the family is ready to go and you have probably spent the last few days thinking about the moment when you can finally walk through the front door with the keys in your hand.
The problem is that settlement does not necessarily happen first thing in the morning. The vendor may still be moving out, particularly if they are also selling a property and using the proceeds to fund their next purchase. It is quite common for vendors to arrange their move around settlement day, which means they may still have furniture and belongings in the property while you are waiting for settlement to be completed.
Under the standard sale and purchase agreement, settlement is generally required to take place by 4pm, subject to the terms of the particular agreement and any circumstances affecting the transaction. That means you really should not book your removal truck for 9am and assume you will be able to move straight in. Sometimes settlement happens quickly and you get the keys early. Sometimes it takes longer. If there are other settlements in the chain, banks and lawyers involved, or the vendor has not yet completed their move, you may find yourself waiting until much later in the day.
If I were planning a move and had the flexibility to do it, I would seriously consider settling the day before I intended to move in. That way, you can get access to the property, have the cleaners come through, make sure everything is ready and then move in the following day without the pressure of waiting for settlement to happen before the removal truck arrives.
Of course, I appreciate that this isn't always possible. If you are selling your existing home and need the proceeds of that sale to complete the purchase of your new home, you may have no choice but to sell, settle, move out and move into the new property all on the same day. In that situation, you need to plan for the possibility that you won't get the keys until later in the day and make sure your removal arrangements allow for that.
Buying a home is a huge financial and emotional commitment, and there is a lot to think about. Most buyers quite rightly focus on the purchase price, finance, building inspections and getting the legal work completed, but the practical details around settlement can have a surprisingly big impact on your experience.
Michelle Erasmus is a Director and Senior Lawyer at Conveyancing Shop Lawyers.
The information in this article is provided for general interest and information purposes only. It is not legal advice and should not be relied upon as such. Every property transaction and individual situation is different, so if you have questions about your particular circumstances, please contact us for advice specific to your situation.
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