Post-Exchange Processing for Residential Clients (Owner Occupiers)
What to expect following the exchange of your investment property…
You’re now approaching settlement – below is a guide to help you prepare your property for leasing and ensure a smooth settlement process.
1. Tax File Number
Banking legislation requires that unless a tax file number is provided for interest-bearing accounts, any interest earned may be taxed at the highest marginal rate.
If your deposit is held in an interest-bearing account, please ensure the relevant details are provided to the selling agent as required.
2. Deposit
If your deposit is held by the selling agent, it will be placed in an interest-bearing trust account and will not be released to the vendor until authorised by your solicitor or as per the contract.
Any interest earned is typically shared between purchaser and vendor in accordance with the contract.
3. Investment Preparation (Key for Investors)
Rather than preparing for a move, we recommend focusing on preparing the property for leasing and income generation, including:
- Identifying any maintenance or improvements required prior to leasing
- Considering presentation (painting, cleaning, styling if required) to maximise rental return
- Obtaining a rental appraisal and leasing strategy
Our Asset Management team can assist with all of the above and coordinate works on your behalf.
4. Final Inspection
Prior to settlement, it is important that you make a final inspection of the property to make sure that nothing has been changed or damaged since the exchange of contracts. We recommend doing a final inspection a few days before settlement.
5. Council & Water Rates
Your solicitor will adjust the Council and Water rates (and levies if an apartment) between you and the vendor according to the settlement date.
6. Insurance (Critical for Investors)
You should arrange landlord insurance (rather than owner-occupier cover), which typically includes:
Landlord protection (tenant damage, rent default, liability cover)
Building insurance (if applicable)
Most insurance companies suggest insuring your new property immediately after the exchange of contracts.
7. Pre-Settlement Leasing Preparation (Recommended)
To minimise vacancy, we recommend commencing leasing preparations prior to settlement:
Appoint a property manager
Arrange professional photography and marketing
Prepare listing and advertising campaign
Schedule open homes (where appropriate)
Rose & Jones Asset Management can manage the full leasing process and have the property ready to go immediately following settlement.
Timeline Overview
Day of Exchange / The Following Day
- Contact your financial institution (if subject to finance) and provide a copy of the front page of the executed contract
- Confirm the details of sale of the property with your appointed solicitor/conveyancer
- If the agent is holding the deposit for the sale, you are required to provide your tax file numbers and bank account details so that the monies can be disbursed upon settlement
- Consider engaging a property manager to begin leasing strategy
Approximately 21 Days from Settlement
- Contact your financial institution and solicitor/conveyancer to see how the settlement process is progressing
- If tenanted property: Confirm existing tenancy details (lease, rent, bond)
- Begin planning any maintenance or upgrades required
- Arrange quotes for repairs or improvements, if needed.
- Arrange quotes and book professional cleaners to do a ‘move clean’ of your current residence. Depending on the property type, size, condition and extent of cleaning services required (e.g. bathrooms & kitchens, inside cupboards, ceiling fans, oven/stove, windows, high-pressure cleaning, washing inside/outside walls, etc.), you can expect to pay anywhere from $500 – $2,000. We recommend obtaining quotes and having the contractors inspect the property prior to confirming a booking.
- Book other maintenance contractors such as carpet cleaners, window cleaners, landscapers, chimney sweepers, pool inspectors, etc. (if applicable)
Approximately 10 Days Prior to Settlement
- Contact your financial institution and solicitor/conveyancer to see how the settlement process is progressing. Confirm the anticipated settlement date and who will be attending
- Finalise property management appointment (if not already done)
- Confirm leasing strategy and rental price
- Arrange any ore-settlement works (cleaning, maintenance, compliance items)
- Book pre-settlement inspection (1-2 days prior)
Approximately 1-3 Days Prior to Settlement
- Conduct pre-settlement inspection (we can do this on your behalf).
- Confirm property condition and includions.
- Finalise access arrangements (keys, alarm codes, strata details).
- Confirm leasing campaign ready to launch.
Settlement Day
- Await confirmation of settlement. Settlement is usually on PEXA, which is electronic. Confirmation is usually within 15 minutes to 1.5 hours, depending on the settlement process.
- Arrange key collection (we can assist with this)
If leasing with Rose & Jones, we can commence the leasing campaign immediately following settlement.
Final Thoughts
All the best for the move and settling into your new home!