Property settlement is a big step for homebuyers and investors. It’s where the ownership of the property legally shifts. It can be a difficult step to understand, but our 6 tips can help guide you through the process.
After the success of acquiring the financing, discovering the right property, and making the big purchase, the next step in the property buying or investment journey is the settlement. We’re in the know-how for buying and selling property, especially when it comes to the settlement.
Here are our 6 steps for getting through that next stage.
1. Appoint a settlement agent
Settlement is an important final stage in the home buying process, so it’s important to appoint a professional settlement agent to conduct and close the business. They will ensure all the relevant checks and transfers are completed correctly.
2. Understand settlement
Settling is the process where the ownership of a property is transferred from the seller to the buyer, and payment of the balance is made. Generally this is conducted between the buyer’s legal and financial representatives and those of the seller. The date of settlement is negotiated in the contract of sale, which is usually 21 days from finance approval.
3. Understand liable charges
Until the day of settlement, the seller is responsible for property rates and other charges, but from that day forward, those charges are adjusted and payable by the buyer. The buyer is also responsible for paying stamp duty on the property which is due by the settlement date.
4. Conduct a final inspection
Buyers are entitled to have the final property inspection the week prior to settlement. Sellers must hand over the property in the same condition it was in when sold. It’s very important buyers check that everything is in the same condition as when they signed the Contract of Sale.
5. Settlement
You will be informed by your Settlement Agent when settlement has been concluded.
6. Take the keys
Lastly, it’s time to collect the keys to the new property. Once the settlement has been completed, the buyer is the property’s new rightful owner. If the property being purchased was a rental, the buyer is entitled to the keys on the same day as settlement. However, it’s important for homebuyers to understand that legally the previous homeowners do not have to provide the keys to the home until noon on the day following the settlement if they are residing in the property.
Settlement Group is equipped with a knowledgeable team of conveyancers that specialise in settlements for both buyers and sellers. For more insight into the process, or for help with a settlement, contact us. We settle on time.