It’s a great achievement selling your property successfully and you should be very pleased with all your efforts . The next phase is the actual settlement process and final settlement on the settlement date. The information below will help you understand the steps, and possible issues that may arise.
Settlement Day – what does this mean?
The final step in the property sale process is settlement day. On this day, any financial obligations connected to the property must be settled. Meanwhile, the buyer pays the remaining agreed amount, and the title is transferred to the buyer. For the seller, it is the day they must provide vacation possession to the buyer.
If possible, try to schedule settlement for early in the day on a weekday other than Friday so that you have time to settle any last-minute issues that may arise. With a little preparation, settlement day can be a smooth and easy process.
Delayed Settlement?
Your settlement date is agreed by both parties and is noted in the contract of sale.
The most common cause for a delayed settlement is around finance. With so many forms to sign and process it’s easy to find you’ve run out of time. Always speak to your conveyancer and keep them updated as they can also assist in following up with your lender. Working with our experienced team can save you time and money.
The timeline for valuation of the property by the buyer’s lender can also cause the settlement to be delayed, and if their finance is then not approved we can help you understand your options.
The final inspection time/date may also cause a delay if the buyer feels that you have not left the property in the condition they expected and there is little time to rectify/negotiate the matter.
While you have rights as the seller you also have responsibilities. Please talk to us so you are clear about your obligations.
Simultaneous settlement
When buying a property at the same time as selling a property some careful planning and attention to detail needs to occur.
It’s vital that you talk to your conveyancer about your circumstances and make them aware of your needs. Issues such as the possibility of the purchase contract being made ‘subject to completion of the sale’ can be explored, or negotiating with the other side so that the settlement dates for your sale and purchase both align.
You’ll need to keep on track with your lender’s (both with any discharge of mortgage or substitution of securities or new lender for your sale) requirements. Our team can help you follow-up with your lender to make sure your finance documentation is progressing. Financial institutions not being ready on the settlement date is one of the main reasons why settlements are delayed.
Steps towards settlement
An essential part of the settlement process is confirming that the details on the Title (including property measurements) match with the physical property. Our team will review this aspect via various government databases but it’s vital you physically confirm that the land you are buying is as described and displayed in the contract.
Once all conditions of the sale have been met, the settlement can be finalised and the buyer will officially take ownership of the title.
PEXA – It’s a Digital world
PEXA – Property Exchange Australia has transitioned the old physical hand over of paper titles and bank cheques to an online electronic settlement platform. All parties to the transaction: seller, buyer, lender, State Revenue Office (Stamp Duty and Land Tax), Council and Water Authority are invited into your unique workspace. It provides a clear record of every aspect of your settlement process.
Your property has settled – Congratulations!
It’s a great feeling when, after all your hard work, your property settles.
If you have any questions about the process or would like to speak with one of our Team – No, problem – we’re here to help.
We’re available on 03 5610-2010 – 5 days a week
This article is provided for general information purposes only. Its content is current at the date of publication. It is not legal advice and is not tailored to meet your individual needs. You should obtain specialist advice based on your specific circumstances before taking any action concerning the matters discussed in this article.
