5 things you can do to help prevent stress on settlement day

25 Aug 2025

It’s exciting times! You are buying or selling your house (or even both). Settlement day can be a busy and stressful day, especially when it comes to moving and even more so if you are moving out and moving in on the same day. Here are 5 simple tips to help have a smoother settlement:

1. Have your money organised (the earlier the better)

If you are buying, ensure your lawyer has your contribution to the purchase price (in cleared funds) and/or signed loan documents at least a couple of days before settlement. The last thing you want to be doing is running to the bank to make an urgent payment to your lawyer’s trust account to be able to settle. It’s important to be organised as settlement usually needs to take place before 4pm, to avoid any last minute or late settlement penalty fees.

When calculating how much you will receive (when selling) or be required to pay (when buying), it is important to allow for unexpected costs. For selling, these could include bank early loan repayment fees and real estate agent’s commission. For buying, these could include rates owed from settlement to the next rate instalment, which will be included on the settlement statement.

2. Complete your pre-settlement inspection earlier than the day before settlement

If buying a property with vacant possession, under the standard sale and purchase agreement you are entitled to an inspection before settlement to check the chattels are in reasonable working order. Any concerns must be raised by the purchaser’s lawyer by 5pm on the working day prior to settlement, although it is preferable to do this earlier (ideally at least 3 working days prior to settlement). Once your lawyer raises any relevant concerns with the vendor and the vendor has agreed to these being remedied, you are entitled to another inspection to confirm they have been. If this is left until settlement day, you will have missed the deadline for notifying any issues.

3. Consider your moving arrangements

Keys – who has them?

The agent will usually hold the keys. Once the vendor’s lawyer receives the settlement funds, they will authorise the agent to release the keys. This is done by the vendor’s lawyer contacting the agent to confirm settlement is complete and confirm the keys are to be released. Once your money is paid, it still takes some time before the keys are actually released.

Deciding when to move?

A purchaser being able to have early access to a property on settlement is at the vendor’s discretion, and not usually advised. This is due to potential complications that can arise if settlement does not complete as expected. This means it’s important to consider what time to book your moving truck for!

Your lawyer will not have much control over when your bank will pay funds so you can settle or when the keys of your property will be released. Settlement day is dependent on many factors, including: the bank (either to confirm how much is owed to discharge a mortgage when selling or drawing down loan funds when buying); whether someone is selling and buying at the same time; when the banks can process money, and agents releasing the keys. Keep this in mind when making moving arrangements and discuss this with your lawyer.

4. Have your property admin sorted (Insurance, Utilities and Property and Water Rates)

Insurance

When you are selling, you should cancel your insurance and utilities after settlement. It is highly recommended to wait to cancel insurance until after you have received confirmation from your lawyer that settlement has been completed. This will save you being caught out in the event settlement is unexpectedly delayed.

When you are buying, you will need to have insurance arranged from the day of settlement. Banks will require you to obtain insurance as part of having a mortgage with them, so having the insurance certificate, with cover from settlement day, and the bank noted as an interested party, is required to draw down your loan funds.

Rates and Water

Property rates are apportioned on settlement, so that you pay rates up until settlement (if selling) or from settlement (if buying). On settlement, the vendor will obtain and pay for a final water reading, after which the purchaser will be responsible for all ongoing water rates. Your lawyer will arrange any meter readings.

Your lawyer will notify Council through Land Information New Zealand that you are buying the property. You will need to let your lawyer know how you would like to receive land and water rates invoices (by email or mail and to which address). When selling, if you receive land or water rates for the property after settlement, let you lawyer know so they can forward this to the purchaser’s lawyer.

5. You can help make your settlement day easier – some do’s and don’ts.

• Do confirm with your lawyer when to pay your contribution to settlement funds and be prepared to do this at least a few days before settlement (unless you use same day cleared payment, in which case the day prior).
• Don’t cancel your insurance until your lawyer has confirmed your sale is complete.
• Do consider when booking your moving trucks (especially if you are selling and buying on the same day) that you might have to wait outside your new property until settlement is completed and the agent can release the keys to you.
• Don’t wait until the day before settlement to complete or raise issues on a pre-settlement inspection, as you want to allow the vendor reasonable time to rectify these issues.