Q&A What happens on settlement day?

What happens on settlement day?

You’ve got the call that you’re the winning bidder and finally secured your dream property.After the celebratory glass of champagne, there is a lot to organize – insurance, removalists, conveyancers are just the start. As you await settlement day it’s great to plan your move and understand what the day entails and how to be prepared.

What is settlement?

Settlement is the exchange of clear title to the property with the funds from the purchaser. The settlement is the official exchange/transfer process which handled by the seller and buyers conveyancers or legal representative, conducted between the legal and financial representatives of both you and the seller.

Settlement is usually scheduled between the two conveyancers, it pays to find out the time settlement is scheduled for often its 11am or 2pm, and this allows you to plan your busy moving day better.

What happens on settlement day?

All the documentation for settlement will be prepared in advance by your conveyancer, this allows the conveyancer to simply check the paperwork on the day of settlement.

There is the requirement that the vendor provide the buyer with clear title to the property on this day, so the conveyancer will check the loans to be paid out and work out if there is any shortfall that the vendor needs to provide at settlement.

The vendor will also need to provide their conveyancer with instructions as to where they would like the funds from the sale paid.

Most conveyancers will contact you as the owner to confirm/finalise any adjustment figures for council rates or water rates that are outstanding.

The purchasers will likely request a final inspection prior to settlement, usually the week before. This allows the purchaser to see first hand that the property is in the same condition as when they inspected it and there has been no damage done to the property.

On settlement day itself your agent, conveyancer and finance broker look after all the exchanges and paperwork, your best to focus on arranging the removalists and making you have left all keys at the property apart from the front door keys for the purchaser which you should leave with the agent.

What happens after settlement?

After settlement has gone through your bank will adjust your loan – debiting the amount they’ve paid at settlement from your loan account.Then its just picking up your keys, unpacking and enjoying the best feeling in the world – your new home!