Handy Hints For Banks

With many banks being relocated in other States and the constant changes in Bank procedures we thought it would be helpful for Banks to have a better understanding of what settlement agents have to do during the settlement process.

Settlement agents now have more to do and less time than they ever did before, a bit like the banks, and given this it's no wonder we are all a little more stressed than before.

As many banks would be aware Real Estate Agents usually draw up the Offer and Acceptance Contracts and have very little regard for time frames or the processes involved leading up to Settlement.

One of the reasons behind this website was the hope that by sharing this information we might educate those associated with our profession in the hope of creating a better working relationship for all of us.

After all we are all working for the same client.

If there are any particular issues you would like addressed on this site or any specific queries you would like answered, please contact us.

Refer to What we do Buyer and What we do Seller for information on the settlement process. Also refer to our forms page and download a copy of the Settlement Overview to see who is responsible for doing what in the Settlement process.

Variables to consider in the settlement process are such issues as:

• The client may live overseas.
• The client might not understand English.
• They might use liquid paper on the document.
• They might not have received the documents and you have to start again.
• And then there's always the client who suddenly decides they don't like the terms and conditions or the interest rate or they want to borrow more money.
• Oh and yes, they forgot to tell you that they want to change the name on the Contract / Mortgage.
• Buyer's contribution is not be available.
• First Home Owner's Grant application has not been lodged.
• There is insufficient funds to pay out the Seller's mortgage.
• You can't get a payout from the Seller's mortgagee.
• Discharge of mortgage is not ready on the Buyer's collateral security.

All this adds time, and the only person who seems to want to resolve it is the settlement agent everyone else is running in the opposite direction.

Once all the documentation has been signed and the Seller and Buyer's Mortgagees are ready we then go through lovely process of arranging the Settlement.

It is the Buyer's settlement agent's role to arrange Settlement with the Buyer's mortgagee.

The Buyer's settlement agent/conveyancer then informs the Seller's conveyancer of the date, time and place. The Seller's conveyancer arranges for the discharging mortgagee to attend Settlement.

Sounds simple really, but rarely is it this simple.

This simple process can take up to four hours PER SETTLEMENT before a time is agreed upon.

In every aspect of property conveyancing it is communication that is the key.

If you, as a Bank/Mortgagee, are aware of any of the following:

• It is a partial discharge of mortgage.
• You are taking collateral security.
• The amount of monies you will have available at settlement.
• Bank Cheque fees.
• When a payout will be available. Where possible provide an indicative payout.

Communicate it to the Settlement Agent. Help us to help you.