Property settlement day is the most exciting day for many home buyers because this is the time when they finally get the keys to their new home. But how does the property settlement process work? In this article, let’s take a look at what to expect on settlement day so you can better prepare yourself.
What is Settlement Day?
Settlement day is more than just getting the keys to your house. This is the day where the seller, your conveyancer, and the lender’s representative will exchange documents and cheques so you own the property. Each state and territory in Australia has different procedures and regulations so it’s best to trust this legal task to a conveyancer or solicitor.
What do you have to do on settlement day?
This is the day when your mortgage will start because your lender will pay the balance of the property purchase price to the seller. Here are other things to expect and to do on settlement day:
- Your conveyancer will register you as the new official owner.
- An exchange of cheques and documents between the buyer and seller of the property.
- The seller will be able to claim the deposit from the real estate agent.
- The seller, lender’s representative, and your property conveyancer will meet on this day, so you as a buyer have no need to be present.
- Fees and government duties will be settled such as water and council rate adjustments.
- Once everything is completed, you can finally move to your new house.
How to prepare for Settlement Day:
Even though your property conveyancer will do everything on settlement day, it’s still best that you, the buyer, are prepared. Here are some things you can do before settlement day:
- Make sure the property is in tip-top shape before you hand out your hard-earned cash. Make sure that the fixture and fittings are in good condition. Also, check for easements and boundaries on the property. You can do this by getting a property valuation report.
- Ask your conveyancer if the documents are organised. This will involve the original land title, and the financial documents.
- Write to the council and water authorities to advise them of a change of property ownership.
- Be informed about when and where the Settlement Day will be so you know when to pick up the keys to your new house.
Your conveyancer will then inform you about the completion of settlement day which means that the seller has received the money. After all these settlement processes, you now have the right of ownership to the property.