Mastering the settlement process: what every prospective homeowner should know
If you are new to buying property, or if maybe it’s been a while, you may have a few questions about what happens on settlement day. HoLo has the low-down on what happens and how you can prepare.
When you’re going through a property purchase, there’s no buzz quite like the one that comes from seeing those anticipated words finally arrive in your inbox: Confirmation of Settlement.
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. Settlement day can be both exciting and stressful, yet once the formalities are done, it’s all worth it.
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. The actual date is stipulated in the sales contract.
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 necessary legal documents are completed and lodged with the respective agencies.
The Certificate of Title is transferred into your name and the property is legally transferred to you.
Once settlement is complete, the keys are handed over by the real estate agent and the property is all yours!
How to prepare for settlement?
Be organised with the paperwork.
For settlement to run smoothly, it’s important that you provide all the necessary paperwork in a timely manner, particularly for the finance. At HoLo, we guide our clients through the whole process to ensure all documents are ready.
You’ll need to work with your conveyancer to complete and submit all the necessary documentation to transfer the property title into your name.
Prior to settlement, your conveyancer or solicitor will likely get you to review the settlement statement, which outlines exactly what you will be paying on settlement day.
Complete a pre-settlement inspection
For settlement to run smoothly, it’s important that you provide all the necessary paperwork in a timely manner, particularly for the finance. At HoLo, we guide our clients through the whole process to ensure all documents are ready.
You’ll need to work with your conveyancer to complete and submit all the necessary documentation to transfer the property title into your name.
Prior to settlement, your conveyancer or solicitor will likely get you to review the settlement statement, which outlines exactly what you will be paying on settlement day.
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 day. Rules may vary by state and territory.For settlement to run smoothly, it’s important that you provide all the necessary paperwork in a timely manner, particularly for the finance. At HoLo, we guide our clients through the whole process to ensure all documents are ready.
Ready to get started?
As your mortgage broker, HoLo will organise pre-approval on your home loan and get your loan application over the line, so that everything runs smoothly come settlement day.
Get in touch today and let’s chat about your exciting new property purchase.
If you’d like to know more, book an appointment or contact us.