As a seller your last week is mostly about disconnecting. There are five things you should focus on:
- Leave the keys, remotes and any alarm codes with the agent before settlement.
- Keep your insurance in place until settlement has actually happened.
- Arrange final meter readings and disconnection of power and gas in your name.
- Disconnect or transfer your telephone and internet.
- Make sure the property has at least 2 RCDs and mains powered smoke alarms.
Insurance
Keep the property insured up to and including the settlement date. If settlement is delayed you need to keep your policy in place. We recommend keeping it in place and cancelling only after settlement is complete.
If the buyer takes possession before settlement, speak to your insurer before you change anything. Don’t cancel on the assumption that possession and settlement are the same moment.
RCDs and smoke alarms
A seller has to have at least two residual current devices and mains powered smoke alarms installed in the property before it transfers to the buyer. It’s a legal obligation on the seller, not something to negotiate.
The penalties are the reason to deal with it early rather than in the last week. Building and Energy publishes a maximum penalty of $15,000 for an individual on the RCD requirement. On smoke alarms it is $5,000 or a $750 infringement notice.
Book an electrician as soon as the contract is signed. You’ll need to procide the compliance certificate to your settlement representative.
Keys and possession
Hand the keys to the agent rather than to the buyer. Include the garage remotes, alarm codes, letterbox key and anything else that opens something.
If the property is your principal place of residence you may be able to stay in possession until noon on the day following settlement. Check your contract before you book the removalist.
Frequently asked questions
When do I cancel my insurance?
After settlement has happened, not before.
Who pays the rates and water up to settlement?
They’re apportioned between you and the buyer at settlement, so you pay for the period you owned it. Your settlement representative works the figures out.
Do I have to be there on settlement day?
No. Your settlement representative attends to it and tells you once it’s happened.
Talk to us about your sale
We act for buyers and sellers on residential and commercial property settlements across Perth and Western Australia.
Call the settlements team on (08) 9220 4430 or download an itemised quote for your own sale.
Related: Bank authority, an important first step for sellers
This article is general information and not legal advice. Every property transaction turns on its own facts.
