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To do list during Pre and Post settlement (Insurance, DS, PM etc)

Discussion in 'The Buying & Selling Process' started by Jaik2012, 23rd Dec, 2015.

  1. Jaik2012

    Jaik2012 Active Member

    Joined:
    19th Jun, 2015
    Posts:
    42
    Location:
    Sydney
    Taking a scenario of property where deposit has been paid, I would like to know the important things to be taken care during the 3 phases i.e. Deposit Paid/Contract signed, Under Contract and Settlement.

    I'm listing few things that were collated from this forum. Looking forward to the clarifications and feedback on any missing pieces.

    Contract signed:
    ----------------------
    1.) Buying Insurance i.e. Landlord insurance for strata properties and both Building and Landlord for houses on the day of signing the contract
    --- Few forum members have highlighted the fact that is a must for Brisbane but not sure for other capital cities whether insurance should be in place before settlement.
    2.) Copy of contract to be sent to Broker for bank valuation
    3.) B & P inspection

    Under contract/Unconditional:
    ----------------------------------------
    Taking aside the aspects of solicitor, finance and negotiations etc, is it time for below on a vacant property
    1.) Engage PM?
    2.) Renovations if any needed?

    Settlement:
    ---------------
    For a vacant property
    1.) Obtain Depreciation schedule
    2.) Renovations if can't be carried out during the above period
    3.) PM
    Not sure what are the pros and cons of below cases if the property is tenanted already.
    a.) Continue with same tenants and old PM?
    b.) Continue with same tenants and new PM of my choice?
    c.) New tenants and new PM

    4.) PAYG variation for tax refund rather than waiting till end of the year
     
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  2. joel

    joel Well-Known Member

    Joined:
    23rd Jun, 2015
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    Location:
    Adelaide
    Contract signed:
    ----------------------
    1.) Buying Insurance i.e. Landlord insurance for strata properties and both Building and Landlord for houses on the day of signing the contract
    I did this in my cooling off period, so my insurance started on the day the cooling off expired, which was after the B&P inspection. If something happened to the property in that period, I'd just cool off..
    2.) Copy of contract to be sent to Broker for bank valuation
    3.) B & P inspection

    Under contract/Unconditional:
    ----------------------------------------
    Taking aside the aspects of solicitor, finance and negotiations etc, is it time for below on a vacant property
    1.) Engage PM? Good to do this as soon as you can, so you can advertise it from the day it settles
    2.) Renovations if any needed? Ask the agent for permission to do this during settlement if you want - but wait until the place has been valued

    Settlement:
    ---------------
    For a vacant property
    1.) Obtain Depreciation schedule No rush to do this one, as long as it's done before tax time
    2.) Renovations if can't be carried out during the above period
    3.) PM
    Not sure what are the pros and cons of below cases if the property is tenanted already.
    a.) Continue with same tenants and old PM?
    b.) Continue with same tenants and new PM of my choice? I'd get my own PM - you can consider the current PM in the pool of PM's you are choosing from, who knows, they might be good.
    c.) New tenants and new PM You can't just kick tenants out - you'll have to wait for lease expiry

    4.) PAYG variation for tax refund rather than waiting till end of the year
     
    Jaik2012 likes this.
  3. Catalyst

    Catalyst Well-Known Member

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    19th Jun, 2015
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    Location:
    Perth
    Good list, @Jaik2012

    PCers, can renovation be done after Unconditional? A PM I've shortlisted said "No"
     
  4. D.T.

    D.T. Adelaide Property Manager Business Member

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    5,583
    Location:
    Adelaide, SA
    Its going to vary widely between sales agents - they have a duty to protect their vendors interests. Technically the answer is no but I've had some allow it no problems at all, and one allowing it upon signing an agreement.
     
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  5. Catalyst

    Catalyst Well-Known Member

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    19th Jun, 2015
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    Location:
    Perth
    Thanks @D.T
     
  6. Davothegreat

    Davothegreat Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
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    Location:
    Sydney
    There is no way I'd ever make any alteration to a property until after it has settled. The property isn't yours until it settles so why risk it. I've had tradesmen go out and provide quotes during settlement though, never had an issue gaining access for this purpose.
     
    Catalyst likes this.