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  • The big day
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03 Settlement
Settlement

05 The big day
The big day

05 Why people say never settle on a Friday
Allow time for settlement

05 ON THE DAY
On the day

Settlement 

This is the big day, when all going well, you become a homeowner.

The full price that’s been agreed will be paid by your lawyer to the seller’s lawyer or agent, or to them directly if it’s been a private sale. Once the seller confirms the funds have been received, the lawyers will put the title of the property into your name and provide you with a copy for your records. 

You are now the new owner of the property, and you may take possession. Your lawyer will most likely hand over your keys, or make arrangements to get them to you. Occasionally, you’ll agree that the seller can stay on until a specified date, and you’ll have to wait to take possession and get your keys then. 

All that hard work, all the saving, all the effort, doing your research, viewing homes, all of your patience, coping with disappointment, has finally paid off. You own your first home. From everyone at BNZ, well done and congratulations!

05 SETTLING

This is the big day, when all going well, you become a homeowner.

The full price that’s been agreed will be paid by your lawyer to the seller’s lawyer or agent, or to them directly if it’s been a private sale. Once the seller confirms the funds have been received, the lawyers will put the title of the property into your name and provide you with a copy for your records. 

You are now the new owner of the property, and you may take possession. Your lawyer will most likely hand over your keys, or make arrangements to get them to you. Occasionally, you’ll agree that the seller can stay on until a specified date, and you’ll have to wait to take possession and get your keys then. 

All that hard work, all the saving, all the effort, doing your research, viewing homes, all of your patience, coping with disappointment, has finally paid off. You own your first home. From everyone at BNZ, well done and congratulations!

05 SETTLING

The big day

This is the day you will finally own your home, and in most cases receive the keys as the new owner. Most of the settlement will be handled by your bank and your lawyer, who will take care of a range of different tasks that must be completed before you can take possession. The main things your lawyer will be doing for you on settlement day are:

 

Draw down your home loan

Arrange with your bank to draw down your home loan. It’s your loan that allows you to complete the purchase of your home. With this successfully done your lawyer will transfer the final amount to the seller of the house.

Complete the transaction

Once the seller (usually called the vendor) has received the final payment your lawyer completes the registration of the property title to you and you arrange to pick up the keys. The house is now yours!

Draw down your home loan

Arrange with your bank to draw down your home loan. It’s your loan that allows you to complete the purchase of your home. With this successfully done your lawyer will transfer the final amount to the seller of the house.

Complete the transaction

Once the seller (usually called the vendor) has received the final payment your lawyer completes the registration of the property title to you and you arrange to pick up the keys. The house is now yours!

There are smaller jobs that your lawyer will also take care of. He or she will check that the rates on the property are up to date, and that utilities like the electricity and water have been paid too. This ensures your transition to your new home is a smooth as possible.

Allow time for settlement

Ideally you can have everything taken care of on the day, but not always. There can be hold ups and delays, and sometimes things happen later than planned, or not until the next day. If you do face some delays on settlement day, and that day is a Friday, you may end up having to wait until Monday before you can complete the process. This is one of the reasons people prefer not to settle on Fridays. 

However, the biggest reason is about penalties. As the buyer you may be penalised if your funds haven’t cleared by an agreed time on the settlement date. The price of the penalty can be a fixed amount or be a portion of the purchase price. This excerpt from law firm Fortune Manning explains the situation:

Link

The "last minute" penalty bite

Understand more about the "last-minute" penalty bite and how to avoid having to pay it.

If settlement does not occur until after 4 pm on the settlement date due to purchaser’s delay, the purchaser has to pay the vendor “late settlement interest” on that portion of the purchase price due to be paid on the settlement date for that day and each day until the next working day the purchaser can settle. “Late settlement interest” is specified on the front page of the agreement, or if not specified, will be double the 90-day bank bill buy rate. 

For example, if settlement is agreed to take place on a Friday, but does not occur until the following Monday, the purchaser is required to pay three days interest regardless of whether the delay was caused by the purchaser or due to circumstances out of the purchaser’s control (for example, delay in obtaining mortgage funds or delay in settlement of the prior sale of the purchaser’s existing property).

If settlement does not occur until after 4 pm on the settlement date due to purchaser’s delay, the purchaser has to pay the vendor “late settlement interest” on that portion of the purchase price due to be paid on the settlement date for that day and each day until the next working day the purchaser can settle. “Late settlement interest” is specified on the front page of the agreement, or if not specified, will be double the 90-day bank bill buy rate. 

For example, if settlement is agreed to take place on a Friday, but does not occur until the following Monday, the purchaser is required to pay three days interest regardless of whether the delay was caused by the purchaser or due to circumstances out of the purchaser’s control (for example, delay in obtaining mortgage funds or delay in settlement of the prior sale of the purchaser’s existing property).

These penalties will always be in writing in the contract you have with the seller, and your lawyer will be able to tell you more about them.

On the day

Before you move in, you have a small window of opportunity to do any work that you want in your new home.

Group 13
The big move

It’s easier to give your new home a spring clean when it’s empty, so if it needs it now’s the time. Schedule carpet cleaning or book a rug doctor if you’re going to do it yourself, and leave plenty of time for it to dry properly. 

  • Moving insurance
  • Moving checklist
2
Cosmetic work

Painting will never be easier than when the place is completely empty, and other works like refinishing wooden floors, installing new curtains, or other small do it yourself projects are much more easily done with no furniture around to hinder you.

  • Plan out your space
3
The essentials

A couple of days before moving, organise a few of the essential things you’ll need before you can get properly unpacked. Buy handy towels, toilet paper, soap and rubbish bags, and take them around the day before if you can. 

  • Utility connections
  • Meter reading
4
Helpful services

You can use NZ Post services to redirect your mail if you need to, and companies like Move Me can help too. And don’t forget to read the meter when you move in.

  • Move me 
  • NZ Post
Group 13
The big move

It’s easier to give your new home a spring clean when it’s empty, so if it needs it now’s the time. Schedule carpet cleaning or book a rug doctor if you’re going to do it yourself, and leave plenty of time for it to dry properly. 

  • Moving insurance
  • Moving checklist
2
Cosmetic work

Painting will never be easier than when the place is completely empty, and other works like refinishing wooden floors, installing new curtains, or other small do it yourself projects are much more easily done with no furniture around to hinder you.

  • Plan out your space
3
The essentials

A couple of days before moving, organise a few of the essential things you’ll need before you can get properly unpacked. Buy handy towels, toilet paper, soap and rubbish bags, and take them around the day before if you can. 

  • Utility connections
  • Meter reading
4
Helpful services

You can use NZ Post services to redirect your mail if you need to, and companies like Move Me can help too. And don’t forget to read the meter when you move in.

  • Move me 
  • NZ Post

A checklist for the big day

Use this list to keep track of all the essentials for the day you settle.

Your deposit

Home loan application

Finding a home

Buying a home

Settling

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