How to ensure funds have cleared before handing over keys/title?

Quite simply - Because they get to invest your cash for three days and earn a few dollars on it. Considering your money only it seems pointless. Keeping in mind they do this for every cheque.... all those dollars and cents add up.

 

Banks deny it but I think they do.

Incidentally, you can pay to have a cheque clear "immediately"

How long cheques take to clear

 

Although the funds may not be withdrawn from your account you are still getting the interest from the deposit/use. The bank only gets to benefit until such time that the cheque is banked (if it takes days between the purchaser raising the bank cheque and settlement the bank benefits not vendor or purchaser or solicitor )

 

But it prevents you withdrawing money until it is cleared.

Instant clearance should be possible these days.

 

As vendor you direct the solicitor as to where you want the fuunds directed this may be several cheques.

 

Not always practical.

Many people want to quickly draw the money out and spend it - but they have to wait.

 

BIG Sigh - yes, yes I can [drool]

 

I would love to be able to use TT or EFT for trust monies. In QLD, while theoretically possible, our law society makes the process of doing EFT/TT so onerous that it is economically unviable to do so. Also the banks would not accept a TT or EFT at a traditional settlement, they want a bank chq. PEXA allows instant cleared funds but is not being used.

 

Hey guys,

Can someone please tell me when final settlement cheque(s) are provided to lawyers (from buyer to buyer's lawyers who then presummably gives it to the seller's lawyers) on settlement day, does the buyer needs to wait for 3 days for the cheque(s) to clear before he/she can obtain the keys to the house?

 

Generally you bank the cheques into your solicitor/conveyancers trust account 4 days out at least to allow clearance, or EFT into their trust account 1-2 days prior.

If cheques are used and have not cleared at settlement, solicitors will take a copy of them prior to banking and send a copy of the vendors solicitor - there is an implied trust between legal professionals that holding cheques is as good as banked.

 

Not in my experience. The buyer gets keys to the house on the day of settlement.

 

No the purchaser does not need to wait for settlement cheques to clear before getting the keys to the property. Your conveyancer/solicitor would normally confirm with you about an hour after settlement that it's all done, and you can go and collect keys. Check in advance with the selling agent where the keys will be waiting for you. Normally they'll be at the selling agency but sometimes they are at the vendor's conveyancer (highly irritating if the conveyancer is a long drive away).

 

Thanks for the quick replies. Not that we are without a house to live in, we have a few thins lined up to do to the house and most of the work has been locked in as soon as the day after settlement date.

 

Yes even bank cheques take a few days to clear, but it is assumed the cheques are good and the buyer immediately takes possession of the property and can get the keys straigth away.

 

Do your friends uv every note they get?

Tell them never to own property again, or at leadt never sell or buy again. How do you know the keys will really open the door? Or some fraudster hasnt sold the place out from under them? Weekly title searches?

Wait till they find out that money isnt really real...

 

If that's the case can the vendor authorise for keys hand over if request?

 

That is what usually happens at settlement.

 

Why would a buyer not request keys on settlement?

 

I dont think its a good idea to indulge hypocondriacs.

 

Requesting is one thing, getting what you request is another isn't it?. I mean the vendor would have to be some scrooge to say no right?.