What Happens Between Going Unconditional and Settlement

Going unconditional is a significant milestone - it means the sale is binding and neither party can walk away without serious financial and legal consequences. But settlement is still weeks away, and there are important obligations and tasks for both vendor and buyer in the interim period.

Your Obligations as Vendor

Once the agreement is unconditional, you have several obligations. First, keep the property insured until settlement date - the standard agreement requires this and you remain the owner until settlement. Second, maintain the property in the same condition as at the date of the agreement - you cannot remove fixtures, damage chattels, or allow the property to deteriorate. Third, ensure all listed chattels are present and in working order for the settlement inspection. Fourth, prepare for your own move-out - the property must be vacant and clean by the settlement date (or the agreed possession time).

The Buyer's Pre-Settlement Inspection

The buyer has the right to a pre-settlement inspection - typically in the 24-48 hours before settlement date. This inspection allows them to confirm that: the property is in the same condition as when they signed the agreement; all listed chattels are present and in working order; no damage has occurred; and the property is clean and reasonably tidy. If the buyer finds issues at the pre-settlement inspection - a chattel that was working is now broken, damage has occurred, something listed as included is missing - they can raise a warranty claim before settlement. These claims are negotiated between the parties, often resulting in a price reduction or deposit from the sale proceeds held in trust pending resolution.

What Your Solicitor Is Doing

Your solicitor is handling the behind-the-scenes legal work. This includes: preparing and checking the title for transfer; liaising with your bank about mortgage discharge; calculating rates and property tax adjustments with the buyer's solicitor; preparing the settlement statement showing your net proceeds; and arranging the electronic transfer of funds on settlement day. The settlement statement your solicitor produces is the final accounting of your sale - it shows the sale price, deductions (commission, solicitor fees, mortgage discharge, rates adjustments), and the net amount deposited to your bank account.

What Can Still Go Wrong

While unconditional agreements rarely fail to settle, it does happen. The most common causes are: the buyer's bank refusing to advance funds on settlement day; the buyer failing to pay the deposit or settlement funds on time (incurring late settlement interest and potentially damages); or a dispute over chattels or property condition discovered at the pre-settlement inspection. Your solicitor is the first call if any of these issues arise.

Information from Settled.govt.nz, the Real Estate Authority (REA), and the New Zealand Law Society. For general information only - always obtain independent legal advice.