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How to prepare for Settlement

Its nearly time for the champagne.  After searching for months and finally finding the perfect home, getting your finance in order and submitting document after document it’s now settlement day. So what does this mean?

 

What is Settlement?

Settlement is the final step in securing the home of your dreams. At this stage the legal process of transferring property ownership from one owner to another occurs. This is a process coordinated by legal and financial representatives of the buyer and the seller.

 

What happens on the day?

Your settlement day is set and agreed upon by both parties and is in the contract of sale. Your solicitor or conveyancer and your lender will meet with the seller’s solicitor or conveyancer to sign all documents. It is important to understand the settlement process what happens so you as the buyer or seller can be prepared for it.

Your lender will:

• Register a mortgage against the title
• Organise the funds for purchasing the property

You as the seller should ensure with your solicitor all the following have been checked:

• Documents are correct and have been signed.
• All clauses in the contract are fulfilled.
• A suitable date and time for settlement is set.
• All payments for rates and other council fees up and to the including settlement date.
• Notify the council and utility suppliers the property will no longer owned by you on settlement date.
• Transfer of land and mortgage is registered with the title office.

For buyers you will need to arrange the following:

• The contract is all signed and correct.
• Organise all the money to be available to complete the sale.
• Organise Building and contents insurance to take effect on purchase date.
• Arrange a suitable time and date for the moving company to move your possessions into your new home. It is a good idea at the chance settlement may be delayed to book moving day for a few days after the initial settlement date.
• Make sure building insurance will take effect once the Sales Contract has been signed and settlement is complete.

 

Final inspection

The agent is to arrange a final inspection this is usually booked in the week before settlement date. This inspection is to ensure the seller is handing over the property to you in the exact same condition as when it was sold.

Settlement Complete 

Its now time to celebrate! Once you have received notification settlement has be finalised you can now arrange to pick up the keys from your agent. Don't forget to arrange for all your utilities to be transferred to your new address.