Settlement Day: What Happens?
When buying a home, settlement is the last step in the property transaction process. In order to provide some clarity on exactly what it entails, we have tailored together a short list of all the important things to remember for your upcoming settlement day.
Firstly, what is a settlement?
In terms of property sales, the settlement is the legal contract drawn up to confirm the purchase and price of the property. The contract also includes the legal transfer of the property from the vendor to the buyer’s name. A specific time is listed within the contract and at this time the final payment is made and then the buyer takes legal possession.
A settlement can be a long process, this is why it is common for both parties to use a conveyancer or solicitor to assist and ensure no key terms are missed prior to signing the Settlement Contract.
Another reason a conveyancer or solicitor is used during settlements is if you don’t or cannot attend on settlement day. They are there to manage everything and ensure your best interests are met.
- A settlement usually takes between one to four months.
- The vendor must pay all property related bills up until the date the buyer takes legal ownership on settlement day.
- If a bill is paid in advance, the vendor can be compensated through an adjustment to the purchase price if required on settlement day.
What will your conveyancer or solicitor do for you on Settlement Day?
- Your conveyancer or solicitor will contact your financier to confirm the settlement date and time.
- It is their responsibility to hand over the buyers cheque to finalise settlement and provide the signed transfer documents.
- In addition, they will conduct searches to ensure there is no monies owing to the Local Authority.
- If a certificate of title has been issued for the Property, your conveyancer or solicitor will hand this over to you.
After all that is done, you get the keys to your new home!
Feel free to contact Hatzis Lawyers for further information on conveyancing matters.