Congratulations! You’ve bought a home, now what comes next? 

Property settlement is the time when the ownership of the home passes from the seller to you, and you then pay the balance of the sale price.

Usually, the seller sets the settlement date and it’s in the contract of sale. Property settlement periods are generally between 30 and 90 days, but they can be longer or shorter.

On settlement day, your lender will register a mortgage against the title of your new house and provide the funds to pay the seller.

Your solicitor will check that any existing mortgage is discharged, any caveats are removed, that all clauses on the sale contract are fulfilled, and that the transfer of land and mortgage is registered with the title office.

Sometimes, there can be a delay in settlement. 

Potential reasons for delay include incomplete or incorrect paperwork, late requests to change how the funds are disbursed, unco-operative parties, delays in financial approvals, insufficient funds or mortgage issues, meaning the seller’s bank may not be ready to release the mortgage in time for settlement.

During this time, it’s important to stay in close contact with your solicitor, and to be ready with everything you need for settlement to take place.

You can prepare for settlement day by ensuring the contract is signed and dated, as well as organising the money needed to cover the sale including stamp duty, lenders mortgage insurance and other fees. 

It’s also a good idea to organise building and contents insurance from the date of purchase and take the opportunity to do a final inspection of the property.

During settlement, you can negotiate a longer settlement period to secure your financing, or you might need a shorter time to relocate. In either case, the length of time can be adjusted and it’s best if you speak to your solicitor about this.

After settlement, your lender will draw down on your loan, meaning they will debit the amount you’ve paid at settlement from your loan account.

Also on settlement date, you will be responsible for paying land transfer duty or stamp duty and the title of the house won’t be transferred into your name until this is paid.

Once that’s done, you can collect the keys and move in!

Buying or selling a home is a busy and exciting time. 

The conveyancing experts here at Bickell & Mackenzie are the people you need to ensure everything goes according to plan.