What Happens On Settlement Day - Pearl Financial

What Happens On Settlement Day

By Shane | Legal

Mar 19

When buying a new property, settlement day is the day you look forward to the most. It’s the day you pick up the keys to your new home and start a new chapter of your life – creating new memories with loved ones while also enjoying your dream home. However, settlement day doesn’t just involve picking up the keys to your new property. There are several processes that your settlement agent need to finalise on your settlement day before you can pick up your keys.

It’s important that you have a settlement agent, which is usually a conveyancer or solicitor, to help you. Usually, the settlement period is 30 to 90 days, but they can be longer or shorter. Your settlement agent handles the processes for you. Just make sure that you double check the sales contract signed and dated with the correct settlement date as agreed to by both you and the seller.

What happens on settlement day?

Your settlement agent meets with your lender and the seller’s representatives to exchange documents on settlement day. They organise the balance of the purchase price to be paid to the seller. Your lender will register a mortgage against the title of your new property and provide the funds to purchase the new property.

Your settlement agent will check that any existing mortgage on the title to the vendor is discharged, any third party or person who has rights over the property is removed, all clauses in the sales contract are fulfilled, and that the transfer of land and mortgage registration with the title office in your state or territory has been processed.

How to prepare for settlement day?  

There are a few things that will help your settlement day go as smoothly as possible. Be prepared and make sure that you’ve contacted a conveyancer or solicitor to act as your agent in the settlement process. Double check the sales contract if signed and dated with the correct settlement date agreed to by both the seller and yourself. Be sure that you’ve organised all the money needed to complete the sale, including the building and contents insurance effective from the purchase date.

Lastly, ensure that you’ve had the opportunity to complete a final inspection of the property. You’ll have the opportunity to do a final inspection of the property just before settlement. This is often done the day before the settlement. Contact the agent to organise the final inspection. The seller must deliver the property in the same condition as when it was sold.

When viewing the property for the final time, be sure to check the appliances, hot water system, locks, keys, walls, and light fittings. You should also check if the heating and cooling are in working order structure, automatic garage doors are supplied and working, and that the window and floor coverings are in the same condition as when you first saw the property.

If you’re purchasing a new home, make sure that all work has been completed and that the appliances are installed and working. If you don’t feel confident checking those things yourself, you can arrange a defects inspection with a building inspector.

One of the common mistakes made on settlement day is not considering for a fact that the process may take time. It’s not unusual for small faults such as missing signatures to occur and delay the process by several hours. It’s important to treat the settlement process as a lengthy one in order to avoid unpleasant possibilities. If you have any further questions regarding your settlement or are interested in buying a new home, you may contact Pearl Financial to help you find the most competitive home loan deal for your dream home.

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About the Author

Shane specialises in helping Gen Y professionals and business owners make an impact by accumulating more assets, generating more income, and having more time to enjoy life. He has a Master of Applied Finance, an MBA, and a Master of Financial Planning. He is also a terrible golfer.

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