What happens after you've sold?
Read our sale to settlement guide
Firstly, congratulations on your sale! This guide is here to help sellers with their move and make sure they understand their obligations and rights as a vendor.
As Auckland's largest and most trusted real estate agency, you can rely on us to help you throughout the sales process - right up until the day of settlement and beyond.
I've sold, now what?
Deposit from purchasers
Barfoot & Thompson will hold the deposit from the purchasers in our trust account for 10 working days or until the sale goes unconditional - whichever is longest. We’ll work with both solicitors directly to arrange this and will let you know once the deposit is transferred to your solicitor’s account. So you don't need to worry about a thing.
We’ll hold your house keys at the Barfoot & Thompson office until your solicitor advises us in writing that the settlement has taken place. At this point they’ll be made available for the purchaser to collect. If there is a chain of settlements that has to happen, the new owners may not get access to the property as early as they may like on the day of settlement. We won’t release your keys until we are legally entitled to do so.
What do I need to do before settlement?
- Make an appointment with your bank to discuss your financial arrangements for settlement day, and to sign the necessary financial documents
- Make an appointment with your solicitor. You’ll need to arrange to sign the necessary legal documents to transfer the property from your name into that of the new owners
- Organise the move! Arrange for someone to look after your children or elderly family members during the packing/moving process if required. Book a moving company if you’re using one, and start collecting boxes and newspaper to pack your things in
- Arrange the transfer of water, telephone, electricity and gas services. You’ll need to contact your service providers to notify them that you’re moving, and have all services at the property transferred from your name. You’ll also need to arrange final readings on the day of your move.
- Transfer any other services and organise your change of address
- If you have any questions about your responsibilities prior to settlement, you can talk to your salesperson or solicitor.
What are my legal responsibilities and rights as a vendor?
On the day you sold your property, you signed a Sale and Purchase Agreement. With all the excitement of the sale you may not have taken it all in - so we’ve pulled out the key information to remind you of your obligations.
3.1 If your property is tenanted, you may have arranged with the purchaser that the tenants stay on under the new ownership. If so, this should have been included in the Sale and Purchase Agreement. If not, the property must be vacant on settlement date.
3.2 If the property is sold with vacant possession, then you must let the purchaser (or anyone authorised by them in writing) complete a property check prior to settlement. They’ll check the condition of the property, including the chattels and fixtures that are included in the sale. They must give you reasonable notice for this visit.
3.4 On the day of possession, you must make all keys available to the purchaser - including all exterior door keys, electronic door openers and keys or codes to any alarms on the property. If the property is tenanted, however, these items will remain with the tenant(s).
4.0 Risk and Insurance
4.1 In between the date of sale and the date of settlement, the property and chattels remain in your name. This means you are responsible for any damage that may occur between the sale and the settlement date.
6.2 Vendors’ warranties and undertakings
There are a few things you are legally obliged to do for settlement date.
- You must ensure all chattels included in the sale are in reasonable working order on settlement date. Excepting fair wear and tear, they should be in the same condition they were in on the date of sale. If there’s any significant damage, the purchaser is entitled to compensation from you.
- You must ensure all bills for electricity, gas, water and rates on the property are up-to-date. There should be no outstanding charges on the accounts on settlement date.
- You must ensure any chattels included in the sale are 100% owned by you on the date of settlement - there should be no items under hire purchase with money owing on them.
For more information, contact your salesperson or solicitor.