Step 4 | Unconditional Contract

1. Arrange Insurance

A typical condition of finance is that you insure the property and have your lender noted as an “interested party”. Prior to settlement, you will need to contact your insurance provider to arrange for the property to be insured from the settlement day. You need to also request they send a “Certificate of Currency” to your Solicitor as proof of this.

Your Solicitor will then return a copy of this to your Lender together with the executed loan documents.

2. Perform Pre-Inspection

Whilst not compulsory, you should arrange to inspect the property before settlement day at least 2 working days before the settlement date.

The pre-settlement inspection is an opportunity to check the property and chattels are in the same condition they were when you signed the agreement to buy the property.

Things to keep an eye out for in the pre-settlement inspection include:

  • make sure that all the chattels/items listed on the Agreement are in the property and are in good working order.

  • check that fixtures such as lights and curtains work too.

  • check if there is any damage to the property since the sale and purchase agreement was signed.

  • check that all the previous occupant’s belongings and rubbish have been removed.

  • make sure that all keys, garage door remotes and security alarm codes are accounted for and will be available to you on settlement day.

If any issues arise from your pre-settlement inspection, you should contact your lawyer or conveyancer immediately. The typical remedies include:

  • the seller agreeing to fix any damage immediately; or

  • the seller may agree that the cost of fixing the issue can be deducted from the final payment.

3. Book a meeting with your Solicitor

Your lawyer will work with your Lender to make sure all the paperwork and payments happen on settlement day. However, you will need to visit your lawyer before settlement to sign:

  • an authority for your lawyer to transfer the title and register a mortgage against it; and

  • your bank’s home loan and finance agreements.

You should also check with your lawyer to ensure there are sufficient funds on the Settlement Date to pay the balance of the Purchase Price. The balance will also likely include a portion of rates e.g. if rates have been paid in advance by the seller, then the balance will increase to reflect your share of those advance rates.