Things to do after giving 10% and before settlement

Hi Guys,
Just trying to get your help in understanding what things we can do while we are waiting for settlement time (was 12 wks settlement) now 11 wks remaining.

One thing we can think of is to get home insurance and start it from day1 after settlement ? What else we can do in this timeframe?

Anna and Glen
 
I get home insurance (building) from the time I sign the contracts. Safeguards you in case the other party doesn't have insuirance and it's not a huge expense.

Things to do- Start getting rid of crap you don't need to move.
Work out where your furniture will go.
Make a list of companies etc you need to notify of your change of address. I got my mail redirected for 12 months. I changed a lot of addresses. Everytime I got a letter with the yellow redirect sticker I found out which ones I'd forgotten and did them. You never remember everything.

-if renovating, measure, order stuff you need.
- Check out the local club (join?).

Dream about your life in your new home.:D

P.S. Different if it's an IP of course.

Don't forget the pre settlement inspection.
 
I get home insurance (building) from the time I sign the contracts. Safeguards you in case the other party doesn't have insuirance and it's not a huge expense.

Things to do- Start getting rid of crap you don't need to move.
Work out where your furniture will go.
Make a list of companies etc you need to notify of your change of address. I got my mail redirected for 12 months. I changed a lot of addresses. Everytime I got a letter with the yellow redirect sticker I found out which ones I'd forgotten and did them. You never remember everything.

-if renovating, measure, order stuff you need.
- Check out the local club (join?).

Dream about your life in your new home.:D

P.S. Different if it's an IP of course.

Don't forget the pre settlement inspection.

I agree to cover with landlord insurance as soon as the contract signed.

But at the same time I would really like to hear from the legal expert.

I wonder if anyone with legal expertise could give advice with the legitimacy of the cover. Until the name changed to the new owners, any claim would be considered invalid, thus not payable.

T
 
Could I ask the reason for a landlord insurance as opposed to a building insurance (unless they are combined?)

The Y-man

Hi Y-man

Usually if the property purchased for investment purpose, the building insurance is called the landlord building insurance. It depends on how your insurer defines the cover, really.



T
 
I have a few IPs across different states but this is the first time an IP in Queensland has given me massive headache pre and post settlement. From my experience,

1. Ensure that you do a pre-settlement check before your lender/conveyancer hands over the rest of the loot on settlement day. If you can't do it yourself (interstate), hire someone to do it.
e.g. In the contract, you are entitled to a reasonably clean and tidy house.
if the house is in an unacceptable messy or dirty condition, the 'inspector' can report back to you and you can then instruct your conveyancer to hold back 2k till the mess is rectified.

I asked my building inspector to check the house on settlement day. The owner's daughter lived there. It was very messy, plastic bags everywhere, another hole punched in the wall :eek: A massive desk left in the hallway of the upstairs bedrooms, lots of junk underneath the house (paint cans, prams, children's motor car, umbrellas etc). Broken fish tank laid lovingly on the mini-shed right beside the house. Gigantic gargoyle statues left behind. But I didn't mind the small angel statue left behind :)

On settlement day, the selling agent apologised for the mess and said he had been trying to reach the owner and the daughter to clean the mess. He then said that he managed to reach the owner, owner was disappointed that daughter left such a mess behind and the owner was coming back from Toowoomba a week later on Sat to clean the house up, remove desk etc.
BEWARE this is a delay tactic by the agent!!! So that settlement day goes through smoothly.
Being people of good faith we trusted the agent and owner's so-called promise to come back and fix the place up. So we did not hold back any money on settlement day. A week went by, surprise, surprise, NO OWNER TURNS UP!!!

2. Instruct the selling agent to tell the owner NOT TO disconnect the electricity but TRANSFER the electricity account to your names/s.

For 3 weeks, we had fun and games with Energex (electricity supplier), Lumo (electricity agent) and Direct Connect (broker). Can someone tell me why there are 3 layers to deal with to connect electricity in Queensland?:confused:
You cannot deal with Energex directly to re-connect electricity to your house. You have to make a request to Direct Connect who makes the request to Lumo (call centre in India) who makes the request to Energex.

Energex inspectors will not enter a house to re-connect electricity if there is something left in the house. In our case, a desk in the hallway. Otherwise, if something/s is left in the house, someone has to accompany them so that offending article may be moved aside from Energy inspector's path.

Fun and games to get a single desk removed from the house. In the end, we paid $70 to get someone to remove the desk after broken promise from selling agent he was going to get his trailer to move it.

Finally an inspector from Energex turns up at the IP, only to leave WITHOUT connecting the power because he reports that it is unsafe. Needs a Form 2 from electrician that identified safety issues have been rectified. Unsafe issues were:
1. Electricity meter box is not closed properly, live wire may be exposed
2. A power point in the kitchen was not fixed to the wall properly : unsafe

Paid $245 to an electrician to change some fuses so that he could close up the electricity box and fix loose power points in house.

Electrician uploads Form 2 to Energex. Energex says Form 2 never received. Tell us to contact Lumo. Lumo tells us IT system down whole day, not reflecting Form 2. Energex tells us Lumo needs to send them a form B2B in order to re-send an inspector down to reconnect power
Lots of calls to Lumo Indian call centre. Hubby is hoarse. Indian gentlemen says that his 'Director will personally take care of this and send the form B2B to Energex.'

Our electrician has some contacts in Energex. He insists that Energex has received the Form 2 he issued.

The Energex God finally comes and is personally escorted by our renovater who has been sitting around for days in the house doing what he can without power.

Our Renovater call us on the phone and reports triumphantly 'WE HAVE POWER!' He's 72, pretty laconic but he was excited as a kid!

Hope people can take something away from our experience.
 
As others above.

  • Get insurance (building and landlord if it's an IP)
  • Make sure you have the money ready ;) - I paid deposit using bank guarantee, and apparently there's another layer of process to go through before settlement for the fund to be paid to the vendor.
  • Address redirection - you can do it online through Australian Post.
  • If it's PPOR... pack up and prepare to move, get a good moving company
  • If it's IP .. choose property manager
 
I would never leave a property without disconnecting the power (or at least having a final reading done, sometimes the electricity is left "on" for the next person, sometimes not depending on the supplier).

While the account is still in my name I am responsible for all costs.

Sadly, I would not take a buyer's word that they would change it into their name promptly. As they are getting free electricity, they may well take their own time to make the change.
Marg
 
Things to do!

If it is rented out at the moment,
Get a copy of the in going Inspection report!
Try and get a signed and dated one, so there can be no arguments about the bond.
Get a copy of the tenants 'application to rent'
(employer etc.)
You do have a right to this kind of thing, as you have an 'interest'
if it is not rented out, obviously you wont have to do any of this!:)


I hope this helps
 
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