September 24, 2018

What to expect on the settlement day

When it comes to conveyancing in Australia, one of the official processes is the settlement. It is done between representatives of the buyer and seller of the property. If you’re the buyer, your property conveyancer will be the one to meet the representatives of the seller. Both parties agree on a time and place for the settlement day.

What is settlement day?

The property conveyancer will receive the title. He/She will also register you as the new official owner of the property.

What happens on the settlement day? Here are the things that can expect on this big day:

  • The property conveyancer will receive the title. He/She will also register you as the new official owner of the property.
  • The lender will pay the balance of the purchase price to the vendor. This marks the start of the mortgage.
  • There will be an exchange of checks wherein the seller can claim the deposit from the real estate agent. The buyer is not required to be present in this exchange as it will be between the property conveyancer and the seller, although in most cases, the lender’s representative will be present.
  • Other fees and duties will be paid to the government.
  • After completing all documents, the buyer will receive the keys to the property.

Settlement day is a major event. If you’re a buyer, here are some things that you can do before the settlement day to keep stress at bay:

  • Check the property and make sure that everything is in good condition. This includes fixtures and fittings that are included in the contract. In case you only have time to do this on the actual settlement day, make sure to do the inspection in the morning so there will still be time to settle issues, if any, throughout the day.
  • Work with your property conveyancer in preparing documents for the transfer of ownership. These include stamp duty, transfer of land, etc.
  • Put the funds required over and above your loan into a legal trust account.  This will be helpful in case the bank encounters a transfer error.

Settlement day need not be a stressful one. In fact, you should look forward to it as it marks the beginning of your status as the official owner of the property. But don’t let excitement lead you into moving in on settlement day. All representatives must be present on that day, and it can get delayed even though it was scheduled in the morning.

Got other ideas on what to expect on settlement day and conveyancing in Australia? Share your insights in the comments section.

About the author  ⁄ Marxa Dillan

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