NEWS
Settlement Day Explained: Everything you need to know
Property settlement is the official process that facilitates the transfer of property ownership between the buyer and the seller. This step is carried out by the legal and financial representatives of both parties and marks the moment when you become the official owner of your new property.
Although settlement is often discussed in terms of time, it is, in fact, a relatively swift procedure that usually takes around an hour to complete. However, before settlement day arrives, there is a lead-up time, typically spanning between 30 to 120 days. During this period, various legal and financial processes are handled to ensure a smooth transfer of ownership. Additionally, this time frame allows for practical matters like moving to be organized seamlessly.
In some cases, a longer settlement period may be requested. This is often seen when either the buyer or the seller needs to buy or sell another property simultaneously.
Understanding Property Settlement
After months of searching, attending inspections, and securing the perfect place, settlement day is just around the corner.
While the excitement of buying your dream home is undeniable, it’s essential to remember that there are still important tasks to handle to ensure a smooth process. From arranging insurance to booking removalists, there’s a checklist of things to organize for settlement day.
In this guide, we’ll explore what settlement day entails. From what you can expect to happen, and the important steps you need to take to ensure a successful settlement. So, let’s get prepared and make sure everything goes seamlessly on the big day!
Settlement day marks the long-awaited moment when you become the legal owner of your new home. It is a significant event in the property buying process, where the final steps are taken to complete the transaction and transfer ownership to you.
During settlement day, your conveyancer or solicitor will handle the exchange of essential documents that seal the deal. While you may not physically participate in the process, it’s a time of anticipation as you await confirmation that everything has gone smoothly.
What happens on Settlement Day?
Funds Transfer: To secure your new property, you’ll need to ensure that the necessary funds are available. Your conveyancer or solicitor will work with you and your lender to facilitate the transfer of the purchase price to the seller.
Seller Confirmation: Once the balance of the purchase price is transferred, the seller will be notified and confirm the receipt of the funds.
Document Exchange: Although most documents are prepared beforehand, final signatures and paperwork are double-checked on settlement day to ensure completion. Once all documents are signed by both parties, they are sent to the titles office for registration, officially making you the new owner of the property.
Keys Exchange: As the paperwork is finalized, the real estate agent will facilitate the exchange of keys, officially granting you access to your new home.
The key steps on settlement day include:
Flexibility is possible during the settlement process as long as both parties reach a mutual agreement. Either party can make adjustments to accommodate the new situation if circumstances change, such as the need to alter the settlement date.
In such cases, the conveyancers play a crucial role in mediating the change requests and facilitating the negotiations. Conveyancers may discuss the possibility of penalty fees that may be incurred due to significant changes.
