Simultaneous settlement

[jodes92]

Apologies if this has been covered before-please direct me to the right place if it has!

I have just sold my PPOR and now looking for another one which i'll hopefully find in the next few weeks! In an ideal world, simultaneous settlement would obviously be the best option.

But how does this work in practice?

i.e. from a funding perspective- I would settle on my sold property a few hours before so I could have the funds?

from a moving perspective- i'd have to have my sold house empty, do I just have a moving truck driving through the suburbs waiting to move into my new place?

Thank you in advance!

 

[Terryw]

Good in theory, but rarely works. Expect to move twice I think.

Firstly, you may feel pressured (by yourself!) in finding a new home as time begins to run out. You may end up just buying something because of the time constraints.

Then when you do find something you will have to negotiation a settlement date earlier than the standard contract. This will mean the sellers may have to do the same thing.

You will also have to coordinate heaps of people. The people buying your place have to be ready as does your discharging bank and their incoming bank. Same with the person you are buying from.

Then, even if you do work it all out, maybe on settlement day one of the bank cheeques may be missing a signature or something and you cannot settle on the sale. That would mean you cannot settle on the purchase (and domino effect on the sellers who may be doing the same as you, another simultaneous settlement).

You may also find that the person selling simply refuses to move out on the day of settlement because their new home ain't ready.

Try to do it, but have a back up plan.

 

[Cherry Pro]

Hi Jodie

We did a simultaneous settlement some years ago when we moved home. We bought before we could sell but had a delayed settlement with our sellers. Both transactions with with CBA, so the bank and our solicitor handled it all, hassle free.

We moved out on a Saturday morning and handed in keys to new buyer on Sunday am. We had received the keys to our new home on Friday, pretty much all organized by our solicitors.

You can even settle and rent back your current home for a few weeks before you can get into your new home.

Good luck with the move.

 

[womble66]

Can work and has in my experience when you arrange for a long settle period on either your new purchase or on the sale of your PPOR that gives you the time to find or sell then to match up the settle dates.

In my families case we found an apratment for my mother and exchanged with a 3 month settlement period after having the PPOR assessed by the REA as to expected sale price and time on market.

On exchange the PPOR was listed and sold within a few weeks for full asking price (yes lucky but price was realistic to us) with a settlement date the same as fpr the new PPOR the left it in the hands of the Solictors involved to get it to work.

On the day we had our Removalist waiting to load and the same with the other parties and once all was settle full action stations to get loaded and out by the agreed time. Only issue was small delay in agreeing to hold some funds to fix carpet problem.

In your case if you have set a standard or short settlement date on the sale of you PPOR before finding a new PPOR you may have an issue with getting it to work.

I am sure that there are many horror stories out there from when its all gone wrong but from my experience it can work when all parties are flexible.