At settlement, all parties involved in the loan transaction sign the necessary legal documents, they are then lodged and funds are transferred to your new loan account. This is the day mortgage life officially starts.
What is the settlement process?
The settlement process beings after you sign the contract for your new home. During this time, your solicitor or conveyancer, also known as your agent in the settlement process, will conduct all the legal requirements including making any necessary enquiries about the property.
These enquiries are answered by the seller’s conveyancer or solicitor. As part of the settlement process you may also want to conduct a pre-settlement inspection.
How long does property settlement take?
Property settlement usually takes between 30 to 90 days however this can vary depending on which state or territory you live in as well as what has been agreed upon between you and the seller.
It is the time between signing the contract of sale and the actual settlement date (the date you officially take ownership and can collect your keys).
What is a pre-settlement inspection?
A pre-settlement inspection is your final opportunity to check over the house before it’s officially yours. Basically this is your time to check that the house is still in the same condition as when you originally bought it. If you’re concerned something has changed you should speak with your conveyancer.
Be mindful not to do your final inspection too far in advance as the seller will need time to do any necessary maintenance, plus you don’t want any further damage to occur from your time of inspection to settlement day. Often this is done one or two days before.
If you’re buying a new home, this is your time to check everything is finished, installed and in working order. You can always have a building inspector do a check for any defects as well.
Check out our pre-settlement inspection checklist to help with your final check.
What happens on the day of settlement?
On the day of settlement, all parties involved get together to finalise the finances, exchange documents and officially transfer ownership of the property, as well as the outgoings e.g. council rates, into your name. The balance of the sale price is paid including any government fees such as stamp duty.
How do I prepare for settlement?
To make settlement a smooth process there are a few things you can do:
- Organise a conveyancer or solicitor to be your agent;
- Sign your contract of sale with an agreed upon settlement date by you and the seller;
- Organise Home & Contents Insurance to be effective from the day you purchase the property so you are covered through settlement and more importantly, moving day;
- Have your funds ready to complete your payment of the relevant fees including stamp duty; and
- Conduct a final inspection of the property.
What happens after settlement?
Once settlement is complete and you are registered with the Land Titles Office you can collect the keys from the agent. Congrats, you’re officially a homeowner.
