Settlement Agent Scenarios

Scenario 1

Robbie was in the process of buying his first house in North Melbourne and was excited about

the prospect of moving in.

When putting in his offer, Robbie requested a settlement for two weeks' time as he couldn't

wait to move out of home. The sellers accepted his offer.

Robbie needed to arrange finance to buy the house. There was so much paperwork to

organise that it took longer than Robbie expected before the bank approved his application

for a loan.

Robbie then employed a settlement agent. The settlement agent got to work immediately

on his file and was alarmed by the short amount of time he had to arrange the settlement.

The process was made even more difficult as the bank's lending section was located in South

Melbourne. The settlement agent persisted with calls to the bank to highlight the urgency in

processing the mortgage documents so that settlement could proceed on the date

nominated by Robbie on the contract. However, banks have their own turn-around times and

with a large work load often do not care about the agreed settlement date as they are not a

party to the contract.

Robbie also had some special conditions on the purchase, such as getting a termite

inspection report done on the property and a general building inspection was also required.

The settlement agent made enquiries with the relevant authorities about the property, made

sure rates and taxes were adjusted correctly and ensured all paperwork was filled out and

signed. The settlement agent was working under significant time pressure and there was

little time to deal with any unexpected surprises.

The settlement date was fast approaching and it became clear that Robbie's bank would not

be in a position to settle

Q Respond to the scenarios in step 1 and, if necessary, refer to the Conveyancing Policy and Procedure Manual (Assessment Resources folder) when developing your responses: 2.1 Re. Scenario 1: As Robbie's settlement agent: what advice would you communicate to Robbie and how will you assist your client with his settlement problem?