23/08/2022
Buying your new home? Why you shouldn’t book removalists for the day of the settlement?
You have finally found your new home, possibly won the auction and have your finance approved – we understand your excitement and the wish to get the keys from your new home and move in as soon as possible.
However, since, normally, the completion date noted on the front page of the contract (and possibly notified to you by your solicitor/conveyancer as a settlement date) is not the “time of the essence”, more often than it should, the settlement does not happen on that “initial” completion date*.
Imagine now that you have ended your lease, booked your removalists, paid the deposit for the same, they are now standing in front of your new home waiting to get authority to unload and you receive a call/email/message saying that the settlement did not occur. Without mentioning the money and the time wasted, we are always thinking of how much stress and anxiety this situation creates.
Some would suggest asking the vendor to allow the purchaser to take possession before the matter is settled, however, it is not only too risky for the vendor but also for you as a purchaser. Signing the contract does not give you or guarantee any ownership rights towards the property and you become a new owner of your new home only after the settlement is completed.
Imagine a situation where the vendor allowed you to move in before the matter is completed (very rare occasions and usually subject to additional securities being provided by you to the vendor) and the matter does not complete at all. You are now not only required to move out from the property, but also make sure you return it in the same condition as you took it, make good any damage made and reinstate any alterations done to the property. All of which in one circumstances can look as “not such a big deal” whilst in other – can create quite a room for arguments and conflicts.
This is a risk management that we at Ciparis Law always think about and advise you on. At the end, it is always your decision as to whether to take the risk or not. We just make sure that you make a well informed and legally calculated decision.
Thank you!
*completion date, usually, becomes “time of the essence” when, after the settlement does not happen on the initial completion date, the notice to complete is issued noting the new completion date.
Ciparis Law notes that the above article is written by analysing usual scenarios in the industry. However, every matter is different and the appropriate advice can only be given after reviewing the relevant documentation and assessing all circumstances of a particular matter.