18 April 2019
Don’t let paperwork stall your farm sale
Insurance plays a big part when it comes to securing your farm sale, but too often it’s left to the last minute. With more due diligence required nowadays, it’s important that you can rely on us to get your paperwork sorted on time.
It’s not uncommon for clients to ring in very close to the settlement date of a new property or farm. When there isn’t enough time to get out to the new property before settlement, we issue a 30-day cover note.
Until now, this has met the bank’s requirements for funds to be drawn down and the sale to go through. Your Rural Manager would then visit the new property and put the appropriate cover in place inside the 30 days.
Banks are pushing back
Some banks are no longer accepting the 30-day cover notes. While this isn’t currently all banks, we do expect most will follow in the near future.
All that means for you, is allowing a little extra time to organise covers for the new property.
Earlier is always better, and as a bare minimum, you should allow at least 10 working days before your settlement date. The more time you give us to get to your new property, put the right cover in place and guarantee a certificate of currency to meet your finance requirements—the smoother your sale will be.
Usually, your legal advisor or real estate agent will help organise this, and it’s a conversation they should be having with you well ahead of the settlement date.