3 Common Causes of Settlement Delays
If you’re seeking a professional to conduct conveyancing in Melbourne, it’s important to choose someone who can help you streamline the settlement process as much as possible. Settlement delays can cause problems with the transfer of the title, as the title may not be able to be transferred until the settlement date. Settlement delays can also be frustrating because they can cause a keen buyer to miss out on a property altogether. In order to avoid settlement delays, you first have to understand what causes them. This article will take a look at three common causes of settlement delays.
What is a Settlement Delay?
A settlement delay is a situation in which the closing of a real estate transaction is postponed for a period of time beyond the originally scheduled date. Settlement delays can be caused by a variety of factors, including title issues, financing problems, appraisal problems, inspections and repairs. Settlement delays can be very disruptive when it comes to conveyancing in Melbourne. For instance, each party involved in the transaction may become impatient and either pass on buying the property or seek another buyer for the property. It can also cause the buying and selling parties to not be able to agree on the terms of the transaction or renegotiate.
Reasons Settlement Delays Happen
Settlement delays are frustrating and can cause a transaction to fall apart, rendering conveyancing in Melbourne a futile exercise. Some common reasons why settlement delays occur include:
The Property Hasn’t Been Properly Inspected
One of the most common reasons for the onset of a settlement delay is the failure of either the selling or buying party to have the property properly inspected. It’s important to have a professional inspection done before settling on a property or listing one for sale, as there may be structural issues or infestations, such as termites, that either party may not be privy to. Issues with the property that need to be addressed can cause lengthy delays in the settlement process.
Financing Hasn’t Been Finalised
If you’re financing your purchase, the lender will need to approve the loan before settlement can take place. This process can sometimes take longer than expected, and as such, the settlement date on the property may need to be pushed back. While this is a perfectly understandable issue, it can leave the property vulnerable to being offered on by other interested parties. You should make every attempt to get your financing finalised and released to you before you intend to make offers or settle on buying a property.
The Title Search isn’t Complete
The title search is an important step in the settlement process, but sometimes, companies that offer conveyancing in Melbourne can have a difficult time completing the title search before settlement. More commonly, certain issues with the title, such as easements or heritage listing requirements, will cause a settlement delay to occur. By hiring a professional conveyancer with a proven track record of performance, you can greatly reduce the likelihood of this issue occurring.
Settlement delays are frustrating, time-consuming and can cause a transaction to break down altogether. But, by understanding what causes settlement delays to happen, as well as keeping an open and constant line of communication with the other party or parties involved in the settlement, you can ensure everyone is on the same page and streamline the settlement process as much as possible.