As mentioned in the InfoTrack Webinar “10 Settlement Clerk Tips for Settling effectively”, there are a number of things you need to look out for to conduct a settlement correctly and effectively in NSW. I’ve been working in a variety of areas within the industry including Settlements, Strata Inspections, Land Registry Services lodgments and searching and Court work for almost 30 years; I’ve seen it all. Based on my experience, here’s my advice on what you need for a NSW settlement.
Preparing Settlement Instructions
One of the things that can be the most helpful at settlement are in fact the instructions that we receive to conduct the settlement itself. I know this seems like a bit of a no-brainer, but it is surprising when we receive instructions, how little information is sometimes provided. The easiest way to ensure you get your instructions correct is to use the InfoTrack pro forma settlement instructions.
Having your settlement instructions correct can mean the difference between things going smoothly and items being missed. If your instructions are too obscure or incomplete, they may be misinterpreted, and if you’re unavailable to clarify them, settlement may be cancelled for inconsequential reasons.
Supporting documents for a Purchase or Sale packet
If you have extra items that are required at settlement either to hand across or to collect, ensure that they are included in the settlement packet when possible (sometimes these items need to be couriered to us from elsewhere at different times). It’s also important that you list these in your instructions with clear information on what is to happen to them.
Preparing the Transfer
When getting a transfer ready for settlement, ensure you have everything signed correctly and all notations (for powers of attorney, company signing clauses, etc) are indicated in the appropriate areas on the form. Getting these right ensures a smooth settlement.
The eNOS & NOS
Just as important to a successful settlement is getting the Notice of Sale (NOS) or electronic NOS (eNOS) correct. Make sure the details match your transfer and everything has been complete correctly.
Final Searches/ CT Inquiries
Conducting final searches and CT Inquiries can help smooth over a troubling settlement. InfoTrack has packaged search bundles that provides both to make this part of the settlement much easier to navigate.
e-CT’s and CoRD Consents
The advent of the paperless eCT is by far the most problematic thing we encounter on settlement these days, just ahead of transfers (qv). Care must be taken when coming across these new titles as an e-CT is NOT the same as a CT that has not issued. Something as simple as a single hyphen missing from a CT Inquiry will result in the document not being able to be registered with the LRS and is difficult to rectify.
Types of titles including Old System, RPA, Volume-Folio & e-CT
As you may know, there are many different types of title in NSW that all have their own unique ways of being dealt with. Make sure that you understand the differences and how they impact settlement.
Tip Summary: A quick summary of additional tips for settlement:
- Add all of the supporting documents listed above to your settlement packet
- Ensure all dealings are executed and witnessed correctly (and note that separate requirements exist for Transfers that involve Execution by a registered, deregistered or foreign company. Refer to the LRS Website for further details).
- When signing documents, if 1 person signs as Attorney on behalf of more than 1 individual, they MUST sign the number of times they are nominated. For example, if they sign for 2 people, they MUST sign TWICE.
- Provide a copy of all relevant Powers of Attorney at settlement.
- Provide a final search for ALL transactions to ensure that the title is clear and that the edition is correct. (Be careful of caveats, unregistered dealings and purchasers caveats!)
- Take special care if dealing with Old System, RPA, Volume-Folio & new e-CTs.
Hopefully, these tips might be your secret weapon for improving how your settlements are conducted, smooth out any rough patches and maybe even make your office a better place to work!
Join us in May for our re-run of the popular “10 Settlement Clerk Tips for Settling effectively” webinar to elaborate on these glimpses into NSW settlements.
