# Problems with settlement

Settlement is where I've had the most problems, so I'm dedicating an entire section to this rare situation that I seem to keep getting into.

## You have a problem settling

### You cannot settle due to funding issues

This can happen easily - for example you've arranged funding, and you have lost your job in between going unconditional and settlement day, causing the bank to withdraw their lending offer to you due to an unexpected and material change in your circumstances. Well, you're pretty screwed. Talk to your lawyer immediately. Some general tips:

1. Do not speak to the vendor directly, let your lawyer deal with it.
2. If the problem is your current bank, talk to other banks immediately. Do not wait for a resolution or answer - you may not get something easily.
3. Remember the penalties for late settlement or no settlement are incredibly high, so do not waste time getting this sorted.

{% hint style="info" %}
**Story time:** Going unconditional on a house, a week before a Level 4 lockdown while being in the travel industry, with the bank asking for assurance you're keeping your job to continue their commitment to lend! I hadn't even lost a job!
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### You are not in the country / unavailable

This is not a problem; your lawyer can hold your keys. Remember to still have full insurance coverage though.&#x20;

## You have a problem with the vendor

### The always solution - Withholding of settlement funds

This is the most effective way of getting action from a vendor. Instruct your lawyer to withhold some funds from the settlement - forcing settlement to proceed, but at a discounted price until the vendor rectifies the issue. Nothing speaks volume like holding back cash. DO NOT fully settle and hope the vendor fixes things afterwards like they promise - I've been there, it doesn't happen.

### The vendor has not moved out

This happens all the time - at the *time* of settlement, the property is offered as *vacant possession* - there should be nothing inside that isn't agreed upon prior. When this occurs, the best course of action is to withhold a nights accommodation or otherwise.

{% hint style="info" %}
**Story time:** On settlement day, it's raining (it always rains on settlement day), your movers have cleared your old house, you've arrived at the new one, and the vendors are still in bed at 12pm... In this situation the pragmatic step was to inform the vendors they'd be liable for your movers waiting time until they sorted it out - they were out within 2 hours (and billed for it of-course!)
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### There's junk left behind

This has happened to me - the vendor has taken everything they want, and left behind everything they don't want. Refer to with-hold of settlement funds to resolve.

{% hint style="info" %}
**Story time:** On settlement day, opening the garden shed and garage to discover it completely full of junk! I had at this point fully settled and my only re-course is via the Disputes Tribunal. It was less stressful to pay for a garbage removal firm.
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### The chattels are missing or different

You saw a nice Bosch dishwasher on going unconditional, and on move-in, there's a Robinhood dishwasher instead (Which by the way is $399 at Mitre10 and is better than Bosch - I have one). Again, you can with-hold funds to resolve.

{% hint style="info" %}
**Story time:** At pre-settlement inspection, the oven and a cooktop were in-operative. The vendor agreed to offer $300 in compensation as final settlement of the matter.
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{% hint style="info" %}
**Story time:** During the pre-settlement inspection, what I *didn't* check was the actual keys to the house - who'd sell a house without keys? On settlement day, the agent discovers they didn't actually have the keys to the front main door, only the patio door... And of-course the custom-made aluminum door has a custom lock panel that can't be re-keyed, and requires a full door replacement...
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### There's a stain on the carpet

Again, you are within your rights to withhold funds to resolve.

{% hint style="info" %}
**Story time:** A week after moving in, discover black stains in certain areas of the carpet, didn't check properly previously. Ah well, add it to the tab.
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As you can see, when the vendor has a problem, you have some great monetary ways of making them comply. If you are the problem, then well, lawyer up.
