Your Guide To Settlement Day
Your Guide To Settlement Day
Settlement day is the final step in the process of buying or selling a property. It’s when documents are exchanged and the legal ownership of property is transferred from one party to another.
If you’re approaching the settlement period in your journey to home-ownership the good news is that there isn’t far to go!
After signing contracts, and ensuring that the property is up to standard, it won’t be long before your dream house is officially and legally yours.
Settlement day is different for every home-buyer: Every sales contract varies, dependant on a myriad of conditions and factors. You should be well aware of the date and time of settlement before signing the sales contract, so you have adequate time to be prepared.
The settlement period is generally between 30 to 90 days, and is a date that is agreed upon by the vendor and the buyer. This is recommended period of time for settlement as it allows both parties to organise funds, contracts, and the logistical process of moving house.
On the day of settlement your solicitor or conveyancer will meet with your lender and the vendors representatives in order to exchange documents and organise for the appropriate funds to the vendor. Your solicitor or conveyancer will ensure that everything is in order, and that all clauses and conditions stated within the contract are fulfilled.
We strongly recommend attending a pre-settlement property inspection prior to the agreed upon settlement day. This is a great way to ensure that any agreed upon conditions or standards have been met by the vendor.
The upside of settlement day is that knowledgable professionals who have your best interest in mind will work to ensure that this process goes smoothly.
Your lender will register a mortgage for your new property, and provide the appropriate funds to purchase the property, and your solicitor or conveyancer will check to make sure that:
- Any pre existing mortgage is terminated
- Any caveat’s are removed
- All agreed upon clauses and/or conditions written in the contract are adequately fulfilled by the vendor.
- The transfer of land and mortgage is officially registered through the state.
Once both you, your representatives and the vendor are all at an agreement, the signed and dated contracts can be exchanged.
After settlement has gone through, your conveyancer or solicitor will send a document known as a ‘Notice of Acquisition’ to water authority, local council, and the state revenue office, in order to notify them that you are now the official owner of the property.
It’s really important to remember that organising utilities is likely the responsibility of the homeowner, which means if you’re planning to move in straight after settlement, you’ll want to organise gas, heating, water, and power before settling into your new property.
Settlement day is essentially the final step in the process of home ownership.
Once the documents are finalised and exchanged you’ll walk away with the keys to your new home! It’s time to celebrate, pop open some champagne and kick back in your new property, congrats!