Settlement for cash purchase

Discussion in 'The Buying & Selling Process' started by teg499, 26th Oct, 2015.

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  1. teg499

    teg499 Well-Known Member

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    Standard settlement time for residential property purchase is 6weeks.
    Is
    this still the case for a cash purchase of a property, or is it much shorter since no finance and loans are reqd?
    What is the standard settlement period for all cash purchase? Thnx.
     
    teg499, 26th Oct, 2015
    #1
  2. JacM

    JacM VIC Buyer's Agent - Melbourne, Geelong, Ballarat Business Member

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    It depends on the state the property is located in, how efficient your conveyancer is, how efficient the seller's conveyancer is, whether the seller has a mortgage on the property that needs to be released (their bank needs to prepare docs for this and be ready in time for settlement) and whether council and the water company are prompt in responding to your conveyancer's request for notices and figures. Chat to your conveyancer to get an understanding of achievable timelines.
     
    JacM, 26th Oct, 2015
    #2
  3. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    If the seller has a loan to discharge, you can expect up to 3 weeks to for them to be ready. I'd suggest 30 days settlement would be achievable in most instances.
     
    Jess Peletier, 26th Oct, 2015
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  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Discharge is supposed to be a 10day turn around time so you could theoretically settle in 10days!
     
    Terry_w, 26th Oct, 2015
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  5. Corey Batt

    Corey Batt Well-Known Member

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    Ha ha ha. The ol' '10 days' for discharges - except when it's a refinance. ;)

    As per OP - I think you'll find that most people don't necessarily want a fast as possible settlement, 30 days at a minimum. It gives everyone time to complete their paperwork, pack/move if necessary etc.
     
    Corey Batt, 26th Oct, 2015
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  6. JacM

    JacM VIC Buyer's Agent - Melbourne, Geelong, Ballarat Business Member

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    Just be wary of the impact to you if the seller's bank isn't ready on time (and some banks are so hopeless you'd almost assume they'll not be ready, or turn up to settlement with the wrong title deeds). You would not be in breach of contract, the seller would, so no biggie there. However if you have signed up a tenant to move in the day after proposed settlement date and the property doesn't settle on time, it'll be a slightly sticky situation.
     
    JacM, 26th Oct, 2015
    #6
  7. JacM

    JacM VIC Buyer's Agent - Melbourne, Geelong, Ballarat Business Member

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    ps i agree with @Corey Batt . And if it is a NAB refinance, allow about 300 years. I watched one take 5 months. Yes 5 months. I could not believe how many times the docs they sent out contained incorrect information, or their systems were unable to produce docs and there had to be manual mucking about, and so on and so forth. I fear for the future of the human race.
     
    JacM, 26th Oct, 2015
    #7
  8. teg499

    teg499 Well-Known Member

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    Thanks guys for the replies.
     
    teg499, 27th Oct, 2015
    #8