What sellers need to do before settlement

Sellers often assume that once the contract is signed, their job is largely done until settlement day arrives. In practice, there are a number of things that need to be managed, arranged, or confirmed in the weeks between contract and settlement — and leaving them too late is one of the most common causes of unnecessary settlement stress.

This guide covers the key steps for sellers in the lead-up to settlement, in roughly the order they need to be addressed.

Settlement stress on the seller’s side is almost always the result of things that weren’t started early enough.

Instruct your lender to discharge the mortgage

If you have a mortgage on the property being sold, your lender needs to be instructed to discharge it at settlement. This process takes time — lenders require documentation, processing periods, and coordination with the settlement platform — and it cannot be left until the week before settlement.

The discharge instructions should be lodged with your lender as soon as the contract is unconditional, or as soon as a firm settlement date is set. Some lenders take two to three weeks to process a discharge, and delays on their end can hold up settlement for everyone.

Your conveyancer will coordinate the discharge process, but they need instructions and access — provide these promptly when asked.

Confirm what stays and what goes

The contract specifies what is included in the sale. If there’s any ambiguity in the inclusions list, settle it early. Walk through the property with the contract’s inclusions and exclusions list before settlement and confirm that:

• Everything listed as included is still in place
• Everything you intend to remove has either been excluded in the contract or isn’t a fixture
• Nothing has been damaged or changed since the buyer’s inspection right was exercised

Keep the property in the agreed condition

The buyer has a right to the property in the same condition as when the contract was signed — reasonable wear and tear excepted. This means:

• Don’t remove fixtures that aren’t excluded in the contract
• Don’t carry out works on the property between signing and settlement without the buyer’s consent
• Repair any damage that occurs before settlement
• Ensure the property is accessible for the buyer’s final inspection

If something does go wrong — a storm, a leak, or accidental damage — notify your conveyancer immediately. The course of action will depend on what the damage is and what the contract provides for.

Redirect mail and arrange utility transfers

These are practical rather than legal steps, but they’re worth attending to in the weeks before settlement:

• Set up mail redirection from your settlement date
• Notify your bank, insurer, employer, and subscriptions of your change of address
• Arrange for electricity, gas, and water accounts to be transferred or closed on the settlement date
• Cancel or transfer any insurance covering the property from settlement day

Provide keys and access arrangements

Confirm with your agent how keys will be released to the buyer on settlement day. In most cases, the agent holds the keys and releases them once settlement is confirmed. Make sure all sets of keys — including remote controls, security fobs, mailbox keys, and pool keys — are with the agent before settlement day.

If you’re selling and buying at the same time

Coordinating a sale and purchase simultaneously is one of the more complex scenarios in residential property. The settlement dates need to align — or bridge finance needs to be arranged — and delays in one transaction can cascade into the other.

Confirm early with your conveyancer how the two transactions are being coordinated, what happens if one is delayed, and whether bridge finance is arranged if needed. These conversations are much easier to have six weeks before settlement than the week before.

The week before settlement

In the final week, confirm with your conveyancer that:

• Your lender’s discharge is confirmed and on track
• The settlement statement is agreed between both sides
• You know what net proceeds you’ll receive and when
• Key release arrangements are confirmed with your agent
• The property will be vacated and in the agreed condition on the settlement date

A settlement that goes smoothly is the result of preparation. Most of what can go wrong on settlement day has a cause that was manageable weeks earlier, when there was time to deal with it properly.