Mastering the settlement process - What every homeowner should know.

There’s nothing quite like the buzz of seeing these words in your inbox: “Settlement Confirmed!”

Settlement day can be both exciting and nerve-wracking. But once the formalities are done, it’s all worth it.

Whether you’re a first-time buyer or are new to how settlement works, find out what you need to know.

What is settlement day?

Settlement day is when ownership of a property is legally transferred from one party to another. It’s facilitated by your legal and financial representatives and those of the seller.

The actual date is stipulated in the sales contract.

Settlement periods are generally 30 to 90 days from when the sales contract is signed by both parties. However, settlement can be longer or shorter if mutually agreed upon.

What happens on settlement day?

On settlement day, your solicitor or conveyancer meets with your lender and the seller’s representatives to exchange paperwork.

Typically, the buyer and the seller do not need to be present.

Your lender and conveyancer will arrange the following with the seller’s representatives:

• The balance of the purchase price, along with any government fees and duties, is settled. All outgoings such as rates, water charges, and strata fees are adjusted between the seller and the buyer (you pay for these from the day after settlement).
• All required legal documents are completed and lodged with the respective agencies.
• The certificate of title is transferred to your name and the property is legally transferred to you.

Once settlement is completed, the keys are handed over by the real estate agent and the property is all yours!

How to prepare for settlement?

1) Be organised with the paperwork

For settlement to run smoothly, it’s important you provide all the necessary paperwork in a timely manner.

On the financial front, we’ll walk you through the documentation required for your loan application.

You’ll also need to work with your conveyancer to complete and submit all the necessary documentation to transfer the property title to your name.

Prior to settlement, your conveyancer will likely get you to review the settlement statement, which outlines exactly what you will be paying on settlement day.

2) Complete a pre-settlement inspection

You’re entitled to inspect the property in the lead up to settlement to ensure it’s in the same condition as when the sales contract was signed.

3) Organise insurance

Make sure you check the date when you need to have your building insurance sorted. It may be from when you sign the sales contract or by settlement. Rules vary by state and territory.

Ready to get started?

Get in touch with us today on 1300 780 440 and we’ll organise pre-approval on your home loan and support you in obtaining your loan application approval.