Settlement day is a whirlwind of emotions—anticipation and excitement. With the right preparation, it can be a smooth and memorable milestone in your homeownership journey.
What is Settlement?
Settlement day is the grand finale of the property purchase process. It’s when the legal ownership of a property transfers from the seller (vendor) to the Buyer. Typically occurring six weeks after signing the contracts, this day is when the sale funds are transferred and the buyer officially becomes the new owner of the property.
Vendor's Payment: The seller receives their payment from their settlement agent through a trust account.
Buyer's Responsibilities: The buyer gets the keys and immediately takes on all responsibilities related to property maintenance, insurance, and utilities, regardless of whether they move in right away or rent out the property.
What Happens on Settlement Day?
Behind the scenes on settlement day, a lot of critical activities take place, orchestrated by the buyer's lender and the conveyancers or solicitors.
Loan Draw Down: The buyer's lender debits the approved loan amount.
Payment of Fees: The buyer pays all remaining fees, including legal fees, transfer duty, and Lenders’ Mortgage Insurance (LMI).
Conveyancers' Role: The buyer's and vendor's conveyancers coordinate the transfer of funds, document signing, and final financial adjustments like council rates and utilities.
Transfer of Title: Once payments are confirmed, the property’s title deeds are transferred from the vendor to the buyer, and this is officially recorded with the titles office.
Key Handover: Once the property has officially settled, key handover can take place. (If the property is the seller's main place of residence, they legally have until 12pm the day after settlement to vacate the home
How to Prepare for Settlement Day
To turn settlement day into a celebration rather than a stress fest, here are some essential steps:
Final Inspection: Conduct a final property inspection as close to settlement day as possible to ensure everything is in order.
Transfer Funds: Arrange to transfer final funds well in advance, as financial transfers can take several days.
Paperwork: Make sure all legal and mortgage paperwork is signed and approved.
Simultaneous Settlement: If you’re selling and buying simultaneously, aim for simultaneous settlement to avoid the need for expensive bridging finance or temporary accommodation.
Additionally, if the seller is still residing in the property, they have until 12pm the following day to move out.
Utility Connections: It is the buyer's responsibility to arrange for utility connections with their chosen providers. Ensure all utilities are set up and ready to go for your move-in date, as this helps avoid any disruption of essential services.
Final Thoughts
Preparation and a clear understanding of the settlement process can make settlement day a smooth and exciting transition. At Noble Avenue Real Estate, we are dedicated to guiding you through every step of your real estate journey. Our local real estate agents provide personalized advice and support to ensure your settlement day is seamless and enjoyable.
We specialise in Hillarys real estate, Carine real estate, Burns Beach real estate and surrounding suburbs, offering unparalleled local knowledge and expertise. For more information on our real estate services reach out today and let us help you make your homeownership dreams a reality.
(08) 9307 1280
admin@nobleavenue.com.au
Office located at: 2/46 Angove Drive, Hillarys
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