Hey there! Let me walk you through what we'll be covering in the pre-settlement module. This is where all the exciting final steps happen before your client gets their keys. We'll show you how to work hand-in-hand with our Client Success team and property managers to make sure everything runs smoothly. You'll learn about keeping track of important paperwork like loan documents and insurance, checking that any agreed-upon improvements are completed properly, and conducting thorough pre-settlement inspections. Whether the property is going to be vacant or tenanted, we've got you covered with all the tools and knowledge you need to handle this phase like a pro. Think of this module as your trusty guide to making sure every property purchase wraps up perfectly!
Table of Contents
What is Pre-Settlement
Pre-settlement is the next checkpoint after unconditional where all the preparation and final checks occur before settlement. These checks include the introduction to a property manager, organising the final bits of paperwork for loans, the remaining balance of funds required, insurance for the property, tax depreciation schedules, any negotiated works are completed and the final inspection to confirm everything is as it should be before taking ownership.
What my responsibilities as the PAA?
At this point the Client Success team does a lot of the preparation and the heavy lifting. But what do you do as a PAA? Provide Client Success with the Property manager details for the Property manager intro, oversee and track that Client Success has been keeping the client up to date with any milestones for example the balance of funds amount, proof of works to be completed, completing loan documents, insurance policy, tax depreciation schedules, pre-settlement inspections and due dates for each item as well as the outcome of each action/task.
Items to ensure Client Success is actioning with the client
- Balance of funds required to complete the purchase
- Proof of works provided
- Completion of loan documents
- Insurance policy
- Tax depreciation Schedule
- Vacancy or rental campaign organised with Property manager
Proof of works
- Ensure that proof of works is in process/booked before getting close to settlement.
- Review the proof of works received (photos, videos and invoices) and compare it to the list of negotiated items confirming nothing has been missed. Contact agent is any questions / anything missing or not satisfactory.
- Speak to client and request extension to settlement via the solicitors if required
Pre-settlement inspection (Except SA, no Pre-settlement Inspection)
This inspection is to ensure that there is nothing different from when we agreed to purchase the property. This inspection normally occurs either a day or 2 before settlement day or the morning of. Review the photos / videos provided by the property manager along with their notes to ensure everything is in good condition. You can compare the photos to the ones at the time of P&B inspection too.
Here’s Max to go through how to check your PSI report against the P & B report
Here’s some further things you would be checking:
1. General Condition of the Property
- Confirm the property is in the same condition as when you signed the contract.
- Look for any new damage, such as holes in walls, broken windows, or significant wear and tear.
2. Agreed Repairs or Inclusions
- Ensure any repairs agreed upon in the contract have been completed to a satisfactory standard.
- Check for included fixtures and fittings (e.g., light fixtures, curtains, appliances) to confirm they are present and in working order.
3. Cleanliness
- Ensure the property has been left clean and tidy, as outlined in the contract.
- Look for excessive rubbish or debris that should have been removed.
4. Water, Electricity, and Gas
- Test that utilities are connected and functioning:
- Run taps to check water pressure and hot water.
- Turn on light switches to confirm electricity is operational.
- Test gas connections if applicable (e.g., stove or heater).
5. Appliances
- Check that included appliances (e.g., oven, stove, dishwasher, air conditioning) are in working order.
6. Locks, Doors, and Windows
- Test all doors and windows to ensure they open, close, and lock properly.
- Check for missing or damaged keys and request replacements if necessary.
7. Outdoor Areas
- Inspect the garden, fences, and external structures like sheds or garages to ensure they are in the agreed condition.
- Check for any newly added rubbish or damage.
8. Pest or Structural Issues
- Look for signs of pest infestations (e.g., termites, rodent droppings).
- Check for any major structural concerns like large cracks or water damage that may have developed.
9. Measurements or Plans
- Confirm any details that might impact your plans, such as room measurements or land boundaries (if applicable).
10. Final Walkthrough
- Perform a final walkthrough to ensure everything is as expected and there are no last-minute surprises.
What if I find something: If you discover any issues during the inspection, raise them with the client and your solicitor or conveyancer immediately so they can address them with the seller before settlement or request an extension if required.
PSI Checklist here: Pre-Settlement Inspection Checklist (Responses)
Now that you know how to be prepared for settlement, it’s time to execute. Jump into the next module to find out how:
Learning Competency Checklist
1. Understanding the Pre-Settlement Process
- Competency: Demonstrate a thorough understanding of what pre-settlement means and why it is critical.
- Pass Criteria:
- Clearly explains that pre-settlement is the phase after a contract becomes unconditional, where all final checks (e.g., final inspections, documentation, funding, insurance, tax schedules, and completion of negotiated works) are completed.
- Describes how these steps protect the buyer and ensure a smooth handover.
- Fail Criteria:
- Is unable to clearly define pre-settlement or overlooks essential final checks.
- Underestimates the risks of rushing or skipping these steps.
2. Defining PAA Responsibilities During Pre-Settlement
- Competency: Understand the role of the Property Acquisitions Analyst (PAA) during the pre-settlement phase.
- Pass Criteria:
- Explains that the PAA’s responsibilities include providing Client Success with the property manager’s details, tracking and overseeing progress on final tasks (such as loan document completion, deposit balance, insurance, tax depreciation schedules, and pre-settlement inspections), and ensuring that all agreed actions are executed on time.
- Fail Criteria:
- Fails to identify or describe the PAA’s responsibilities during pre-settlement.
- Does not link the PAA’s role to the overall smooth transition to settlement.
3. Coordinating Client Success Actions
- Competency: Ensure that the Client Success team is actively managing all key pre-settlement items.
- Pass Criteria:
- Lists the specific items that must be actioned (e.g., confirming balance of funds, obtaining proof of works, completion of loan documents, securing insurance, organizing tax depreciation schedules, and coordinating vacancy or rental campaigns with the property manager).
- Explains the importance of each item in finalizing the purchase.
- Fail Criteria:
- Overlooks one or more critical items or does not understand their role in the settlement process.
- Is unable to communicate the importance of timely updates from the Client Success team.
4. Managing Proof of Works
- Competency: Demonstrate proficiency in overseeing and reviewing proof of works before settlement.
- Pass Criteria:
- Describes how to ensure that any agreed-upon repairs or improvements have been initiated and documented through photos, videos, and invoices.
- Explains how to compare these proofs with the negotiated list and how to follow up if discrepancies or missing items are detected.
- Fail Criteria:
- Neglects to review or verify proof of works or fails to act on missing/incomplete documentation.
- Does not understand the impact of unresolved repair issues on the final settlement.
5. Conducting a Thorough Pre-Settlement Inspection (PSI)
- Competency: Show the ability to plan for and execute a pre-settlement inspection to confirm that the property remains in the agreed condition.
- Pass Criteria:
- Clearly explains that a PSI (conducted one or two days before settlement) verifies that no new damage or changes have occurred since the last inspection.
- Lists the key areas to check: general property condition, completion of agreed repairs, cleanliness, functioning utilities and appliances, security of locks and windows, outdoor condition, pest or structural issues, and verifying measurements if applicable.
- Fail Criteria:
- Omits significant areas to inspect or is unable to articulate the importance of a final walkthrough.
- Does not compare current conditions with prior reports (such as the P&B report).
6. Evaluating and Comparing Inspection Findings
- Competency: Demonstrate how to analyze and compare the pre-settlement inspection findings against the original Pest & Building (P&B) report.
- Pass Criteria:
- Explains how to review photos, videos, and inspector notes to identify any changes or issues that have arisen since the P&B inspection.
- Clearly describes the steps to take if discrepancies or new issues are found (e.g., raising concerns with the client and solicitor, or requesting an extension).
- Fail Criteria:
- Fails to compare current inspection findings with previous reports or does not know how to escalate newly discovered issues.
- Overlooks minor changes that could signal larger problems post-settlement.
7. Communicating Pre-Settlement Updates
- Competency: Demonstrate the ability to communicate all pre-settlement progress and findings clearly to the client and internal teams.
- Pass Criteria:
- Uses a structured approach to update the client on key milestones (e.g., confirmation of funds, proof of works status, loan and insurance documentation, and inspection results) through email and WhatsApp messages.
- Adapts communication to the client’s preferred style and ensures that all stakeholders are informed.
- Fail Criteria:
- Fails to provide timely or clear updates, leaving the client or team uninformed about critical pre-settlement developments.
8. Integrating All Pre-Settlement Processes
- Competency: Show the ability to synthesize all pre-settlement steps (proof of works, PSI, finance, insurance, etc.) into a cohesive final pre-settlement strategy.
- Pass Criteria:
- Explains how each element (e.g., Client Success actions, proof of works, inspections, finance documents) interlinks to ensure a smooth transition to settlement.
- Provides a clear rationale for confirming that every condition has been met before settlement.
- Fail Criteria:
- Treats each process in isolation without integrating them into a final, comprehensive review.
- Leaves gaps that could delay or compromise the settlement.
9. Finalizing Pre-Settlement Documentation and Follow-Up
- Competency: Demonstrate a systematic approach to final checks and documentation updates before settlement.
- Pass Criteria:
- Ensures all updates are reflected in internal systems (e.g., Attio) and that a final checklist (including proof of works, inspection results, and all client success updates) is completed.
- Explains the importance of confirming that no last-minute issues exist and communicating next steps to the client.
- Fail Criteria:
- Fails to update internal records or complete a final comprehensive review, risking unresolved issues at settlement.
- Leaves clients unclear about what to expect on settlement day.
10. Communicating Unconditional Status and Next Steps
- Competency: Understand the transition from pre-settlement to settlement and clearly communicate this status and the following steps to all parties.
- Pass Criteria:
- Explains that after all pre-settlement checks, finance, and inspections are confirmed, the process moves forward toward settlement.
- Details how to update the status in Attio and send final communications (email and WhatsApp) outlining the remaining steps (e.g., final deposit, property manager introduction, pre-settlement inspection outcomes).
- Fail Criteria:
- Is unclear about the transition process or does not communicate the final steps effectively, potentially delaying the settlement.