Understanding property settlement: The final step in buying your new home.

When buying a new home, the property settlement process is like crossing the finish line in a marathon. This crucial step is when you legally take ownership of the property, but it involves more than just paying the purchase price and receiving the keys.

Settlement is a comprehensive procedure that includes several important tasks before you can start moving in.

These steps might include:

• Conducting a final inspection
• Reviewing and signing transfer documents
• Registering the ownership transfer with the relevant government authority
• Making the final payment to the seller

Many homebuyers hire a conveyancer or solicitor to guide them through the settlement process. Let’s break down what happens during property settlement so you can be fully prepared.

How long does property settlement take?

The settlement period usually spans between one and four months. This period begins when the contract of sale is signed and ends on settlement day, when ownership officially transfers. The exact timeline is agreed upon by both the buyer and seller and is detailed in the sale contract.

Pre-settlement inspection

Before settlement, you’ll have the opportunity to inspect the property one last time. This is your chance to ensure the property is in the same condition it was when the contract was signed. The contract will list which items are included in the sale and what the seller can remove.

During your inspection, check the following:

• There’s no new damage to the property since the contract was signed
• Appliances and fixtures are functional (e.g., plumbing, pool pumps)
• Furniture and other personal items have been cleared out
• There is no leftover debris or construction materials
• The house is reasonably clean, and the gardens are well-maintained

Your conveyancer or solicitor will provide guidance on what to look for and how to handle any issues that arise. Typically, this inspection happens a week or so before settlement.

What is settlement day?

Settlement day is the crucial day when you officially take possession of the property. This date is agreed upon by both parties and specified in the contract of sale.

What happens on settlement day?

On settlement day, a few legal and administrative tasks need to be completed before you can officially become the property owner. Your conveyancer or solicitor can manage all these details for you. You don't need to be physically present—they’ll handle communication with the seller’s legal representative and the bank.

A specific time will be set for final settlement, which is when the final payment is made and ownership transfers. Prior to settlement, your conveyancer will provide a settlement adjustment statement that outlines any pre-settlement adjustments, including stamp duty, concessions, or grants, as well as adjustments for council rates, water charges, and body corporate fees.

The seller is responsible for paying any outstanding bills up to the settlement date. However, if any bills have been paid in advance, you may need to compensate the seller via an adjustment to the purchase price.

It’s important to review the settlement statement carefully before approving the final settlement.

Final settlement

Once you approve the adjustments, your conveyancer or solicitor will meet with the seller’s representative to finalize everything. The payment will be made, and the signed transfer documents will be exchanged. These documents ensure that the property title is clear, meaning there are no legal claims or outstanding mortgages on the property.

After the payment is made and the transfer documents are signed, you’ll receive the keys to your new home. Your conveyancer will then arrange for the ownership transfer to be officially recorded with the relevant government body.

Preparing for settlement day

Settlement day can feel a little overwhelming, but if you’ve prepared in advance, you’ll be in good shape. A few key steps include securing home and contents insurance that starts on or before settlement day to ensure you’re covered from the moment you take possession.

Consult with your conveyancer or solicitor for additional advice on how to prepare for settlement.

After settlement is complete

Once everything is settled, your conveyancer will provide a settlement statement that outlines how the funds were distributed. You should also receive confirmation from your lender about your loan amount and repayment schedule. At this point, you’re ready to pick up the keys, move in, and begin your new chapter in your home.

Get ready to cross the finish line in your home-buying journey.

Let us guide you through the property settlement process so you can move in with confidence. Book a 10-minute chat or call 1300 780 440 to learn more now!