Issue Date:  -  Wednesday, 8 December 2004

Potential delays during silly season settlements

Consumers considering buying property at this time of the year are being warned to factor in additional time for settlement over the festive period.

The Settlement Agents Supervisory Board (SASB) is recommending consumers allow at least two months between purchase and settlement dates.

“A lot of Settlement and Real Estate Agencies close down over the Christmas and New Year period,” SASB Registrar, Geoff Couper said.

“If a consumer’s offer is subject to certain conditions being met, there may be delays in getting access to the property for a Bank Valuation if the real estate agent is away.

“Finding a pest inspector or building surveyor to inspect the property may also be more difficult at this time of the year.

“Banks and government agencies often run on lower staffing numbers during this time.

To be safe, SASB recommends that consumers allow a minimum of 28 days for finance approval and then another 28 days for settlement.

“It is better to allow additional time rather than being concerned settlement may not occur on time and paying penalty interest. 

“Avoidable costs, such as penalty interest, are the last thing consumers need on top of their stamp duty and associated settlement fees, not to mention credit card bills from all their Christmas Shopping,” Mr Couper said.

Consumers are also advised to choose a settlement agent prior to making an offer as a settlement agent can provide invaluable advice about the contract and settlement process.  Consumers should check in advance with their settlement agent about their availability over the holiday period.

“Consumers should always choose a settlement agent who is totally independent of the property transaction and will act in the best interest of the consumer to the exclusion of the other parties.  

“If you use the same settlement agent as the seller, there may be a conflict of interest,” he said. 

For advice on settlement or real estate issues, consumers should visit www.sasb.wa.gov.au  or  www.reba.wa.gov.au , or phone 1300 30 40 64 for the cost of a local call state-wide.