What is Property Settlement?
Property settlement is the process of transferring ownership of a property from a seller to a buyer. This is usually carried out by the buyer's and seller's legal representatives - usually a solicitor or conveyancer.
How Long Does Settlement Take?
It generally takes around six weeks. The exact length of the settlement period will be agreed upon between the buyer and the vendor, and is outlined in the contract of sale.
How to Prepare for Settlement
After you lock in the dream home, you should contact a solicitor or conveyancer to act as your agent in the property settlement process. Secondly, you will need to organise all the funds needed to complete the purchase transaction, including the mortgage application. Thirdly, the contract of sale is signed and dated with the correct settlement date. And you also complete a final inspection of the property.
What Happens on Settlement Day?
On settlement day you will need to provide the funds to purchase the new property. Your conveyancer or solicitor will liaise with the vendor and your bank, to make sure funds are transferred to the vendor. The final transfer documents will be double-checked on the day, including everything that is needed for a clear title to be handed over. This means the rights of third parties have been removed or released which includes any previous mortgages on the property. Your solicitor will also need to get the transfer of ownership registered, and this is done through a relevant government agency in your state or territory.
What Happens After Settlement?
Once settlement is completed, you can pick up the keys from the agent and enjoy living in your new home. Your conveyancer or solicitor will send you the settlement details to confirm how the funds were distributed. You will also receive confirmation from your bank including your loan amount and repayments.
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