Congratulations on the purchase of your new home! After the celebrating is done, it’s time to consider the next steps in the process leading up to the property settlement. Here are our top tips for a smooth settlement day.
Understand what settlement is
Settlement is a legal process which is conducted between the buyer’s legal and financial representatives and those of the seller. Upon settlement the ownership of the property passes from the owner to purchaser and the balance of the sale price is transferred. The date of settlement will have been decided upon signing the contracts when you bought the property and are commonly 30, 60 or 90 days but can be longer or shorter than this. You also will have appointed a solicitor or conveyancer to act as your agent for the settlement process when you signed the contracts.
Inspect the property
A final inspection of the property can be conducted approximately the week before the property settlement. Our Agency will contact you to arrange a suitable time to make this inspection. The purchaser is entitled to make the inspection, however they are not obliged to. The property must be in the same condition as when it was sold.
It is important to organise insurance for the property effective from the day of the contract becoming unconditional. Many financial institutions will require this to safeguard their interests in the property as well as your own.
The seller is responsible for rates and other council fees up to and including the day of settlement, but after settlement you need to pay these costs. At the settlement meeting, all outgoings are adjusted between you and the seller, and are calculated and arranged by your conveyancer or solicitor. You will also be required to pay land transfer duty (formerly known as stamp duty). This is normally paid at settlement and arranged by your bank.
Collect the keys
The exciting moment! It’s time to collect the keys for your new home. Once the property settlement has taken place, the conveyancer or solicitor acting on your behalf will contact our office to say that settlement has occurred. This can take up to an hour or so after the actual settlement. We are not permitted to release the keys until we have it in writing that the settlement has occurred. Once we have received the notification in writing we will call you to let you know you can come and collect your keys.
Have further questions? Contact our office on 52614 711