There’s nothing quite like the thrill of finding those words in your inbox: Confirmation of settlement of your property purchase.

The day of settlement can be a mix of excitement and tension. However, once the formalities are concluded, the satisfaction outweighs it all.

If you’re planning a property purchase and are new to the intricacies of settlement procedures, here’s some valuable information tailored for you.

What is Settlement day?

• Settlement day is when possession of a property is legally transferred from one party to another. It’s assisted by your legal and financial representatives, and those of the seller.
• The actual date is stipulated in the sales contract.
• Typically, settlement periods are 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.

What happens on settlement day?
On settlement day your solicitor or conveyancer will engage with your lender and the seller’s representatives to exchange necessary documentation. In most cases, the buyer and the seller do not need to be present.

Your lender and conveyancer will coordinate with the seller’s representatives to ensure the following:

1. The balance of the purchase price, in addition to any government fees and duties, is settled. All expenses 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).
2. All necessary legal documents are completed and lodged with the relevant agencies.
3. The official transfer of the title certificate to your name, completing the legal transference of the property to you.

Once settlement is completed, the keys are handed over by the real estate agent and the property officially becomes yours!

How to prepare for settlement?

1) Be organised with the paperwork.
To facilitate a seamless settlement, it is imperative to promptly provide all essential documents.
For the finance side of things, we’ll guide you through the required paperwork for your loan application.
You’ll also need to work with your conveyancer to complete and submit all the necessary documentation to transfer the property title to your name.
Before settlement, your conveyancer or solicitor will likely get you to review the settlement statement, outlining the precise payments due on settlement day.

2) Conduct a pre-settlement inspection
You’re entitled to inspect the property prior to settlement to make sure it’s in the same condition as when the sales contract was signed. Unpleasant surprises when you open your front door are to be avoided at all costs.

3) Organise insurance
Confirm the deadline for securing your building insurance. It may be from when you sign the sales contract, or by settlement. Regulations vary by state and territory.

Ready to get started?
As your 1st Street Mortgage Broker, we’ll organise pre-approval for your home loan and get your loan application over the line, so that everything runs smoothly come settlement day.

Reach out today and let’s chat about your exciting new property purchase.