Mortgages and Financing

The buying and selling of a property is a long drawn process and involves many stages. Settlement is the last stage of the process when the terms of sell or purchase are finalised and the transfer of ownership is initiated.

Steps to be Followed during Settlement

During the finalisation of a property settlement process, few steps need to be followed before concluding the contract of purchase or sale. The steps include:

  • completion of all searches and clarifications relating to the property;
  • completion of negotiation regarding payment of amount due on Settlement;
  • completing formalities with the financer and making due arrangements for the money to be paid on Settlement; and
  • payment of all the relevant duties and taxes like Stamp Duty.

The norms of final settlement varies between States and Territories but normally it takes place up to 6 weeks after the exchange of contracts happen and terms are finalised. The Title Deed is exchanged after the payment of the due amount.

The possession of the property is transferred after settlement. However, an early possession may be taken ‘under licence’ after an agreed payment of rent.

Duty of Solicitor/Conveyancer

The help of a professional like a Solicitor or a Conveyancer may be sought for finalising the settlement process. It will be the duty of the Solicitor or Conveyancer to prepare and arrange for signing of transfer of title documents. Ideally, the transfer documents should be signed 2 weeks prior to the date of settlement as it needs to be provided to the financer after the settlement.

The financer or lender takes up the responsibility of registering the document at the State or Territory Titles Office and upon registration, the title of the property will be changed in the new owner’s name. It will be the duty of the Solicitor involved to examine the Land Registry Transfer documents to ensure it has been properly completed, signed and witnessed.

The Solicitor or Conveyancer will contact the financer, the other party’s Solicitor or authorised representative and any other interested parties to arrange and decide on the date and place of the settlement. The Solicitor or Conveyancer will also advice and inform the concerned parties about the implications of the terms of the contract and the fund required to be provided prior to the settlement. This amount is generally paid by the purchaser a day prior to the settlement by issuing a cheque.

After the conclusion of the process, the Solicitor or the authorised representative of the purchaser should contact the authorised representative of the seller regarding transfer of possession.

The Solicitor also confirms the conclusion of the settlement process and sends a Statement of Adjustment to show the disbursement of funds to the parties involved.

Our team of experts at Total Home Buyer Services are specially trained in making the entire Conveyancing process a smooth and hassle free experience for you. We can guide you and act on your behalf during the entire Settlement process. Please feel free to contact us in case of any query in this regard.

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