The settlement process is the last leg when dealing with property transfers, and although it may seem like the light at the end of the tunnel for your clients, it can go very wrong, very quickly. There are many factors to settling effectively, and if any number of them are overlooked, it can make things difficult for your agent to get all the information they need to ensure that there are no hiccups or delays. Here are some basic tips to follow to help your agent settle effectively and conclude the final steps in transferring property.
Tip 1: Give your agent specific details
When engaging with an agent, it is crucial to advise exactly what is required for the matter. Whether your agent will need to attend to stamping, registration of priority notice, collection of cheques, etc. Also, your agent will need the settlement details including time, date, venue and which party the agent acts for in the transaction. This sets the foundation to settle effectively, and if any of the details provided change, you must advise your agent at your earliest convenience.
Tip 2: Know all the documents that are required
For most sale & purchase settlements, it's likely there will be a document that needs to be provided. Your agent will require them promptly to ensure settlement is not delayed. Some of the documents may include:
For a purchase:
- Fully executed transfer (form 1) & form 24
- Priority notice/withdrawal of priority notice
- Fully certified trust deeds
- Current title search
For a sale:
- Discharge of mortgage (this could be provided by the mortgagee's bank when applicable)
- Certificate of title (if issued)
Tip 3: Execute your documents correctly
It is imperative to have the required documents executed correctly, witnessed and prepared in a registrable condition before providing them to your agent. If there are any mistakes, this can delay settlement and could potentially force you to reschedule to a later date.
Tip 4: Prepare your agent properly before settlement
Ensure you have provided all relevant documents to your agent on or before the morning of settlement.
This generally includes:
- Contract
- Fully executed form 1 transfer, form 24, form 25 (required for foreign ownership)
- Original form D2.2 or D2.1/D2.7 (when claiming a concession)
- The unconditional letter
Also, you must clearly advise your agent of how the duty will be paid – Either by way of bank or solicitors trust account cheque before settlement/on settlement or via BPay (subject to payment clearing prior to settlement). Please note that full duty payment including any penalty tax (when applicable) must be received before we can endorse the contract and transfer. When there are delays in providing the required information or payment, this can force the settlement to be rescheduled.
Tip 5: Triple check all details
It is very easy for miscommunications to occur between all relevant parties during preparations for settlement. A helpful tip is to triple check with the other side that all details for settlement haven't changed and are what has been agreed upon. This is best done before drafting the instructions and is essential for your agent to receive the correct details to effect a settlement.
Tip 6: Include all relevant information in your instructions
The instructions are the most essential tools for your agent at settlement. Generally, these are the only details the agent will have, and they must include all relevant information. This may include but is not limited to:
- Settlement date, time, venue
- Who will be attending
- Your details – firm name, contact name, best contact number, how you would like to be advised of completion (Call / TXT) & where you will need the packet returned.
- Cheque details – This includes the cheque payee, amount, who will need to collect it
The above details should be precise. The more information, the better.
Tip 7: Give clear cheque collection directions
Cheque collection could be required before settlement. You need to make sure you advise your agent when booking and on your instructions that it will be necessary. You must include:
- Where your agent is to collect cheques (Including which bank & branch address)
- What cheques they are collecting (Payee & amount)
- If they are required to have an ID/is there is a nominated person to collect them.
Tip 8: Make yourself available during the scheduled settlement time
At settlement time, it is important to have someone available to speak with the agent concerning any errors that can occur. Perhaps the other side is missing a relevant document you have asked your agent to collect, your agent needs to be able to easily contact someone for advice on what you need them to do. Any trouble the agent could have contacting you can result in the need to reschedule the settlement as one, or all the parties are likely to have other settlements to attend.
Tip 9: Give precise post settlement instructions
If there are no further services, you will need to advise your agent on what you want to be done with the file. This could either be returning the file by normal post, express post or hand delivering (when possible). Having these details noted on your instructions will ensure nothing is prolonging the return of settlement packets that can include cheques or important documents.
Tip 10: Double check your banking and registration details
You may require banking and registration services post-settlement, and it's important to have all the required details to be clear and correct on the instructions. Any errors can result in delays in your client's cheque being banked or their property being transferred.
Banking requires the following:
- Which bank to bank the cheques
- Account name, BSB & account number
- Reference of deposit
Registration requires the following:
- Original, registerable documents
- Cheque payable to The Land Titles Office in the correct amount
For more information on preparing a document or determining what is required for OSR Stamping, see the links below or give our friendly staff a call. If you need help with settlement, registration, stamping or other services, visit our settlement services page or log on to your InfoTrack account to book instantly.
QLD Titles Registry Forms
OSR Transfer Duty Forms
InfoTrack Services
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