Final Steps Before the Settlement Process: What You Need to Know
7th August 2024
As the settlement date for your property purchase approaches, it’s crucial to understand the final steps to ensure a smooth transition. With the contract of sale agreed upon and your financing in place, below is a guide to help you prepare for the settlement process and what you need to know.
- Conduct a Final Property Inspection
Before settlement, arrange a final inspection of the property. This is your opportunity to verify that the property is in the agreed condition. Ensure that all fixtures, fittings, and inclusions are present and functioning correctly. If you identify any discrepancies or issues, notify your conveyancer immediately to address them before the settlement.
- Secure Your Financing
Confirm that your home loan is fully approved, and the funds are ready for settlement. Your lender will work closely with your conveyancer to handle the financial transactions on settlement day. Make sure all documents are in order and that your lender has the necessary funds available.
- Transfer Additional Money Required
Your conveyancer will provide you with a settlement statement detailing the funds required for the settlement, including any additional costs such as taxes and adjustments. Share this statement with your lender to ensure they transfer the correct amount. Your conveyancer will then facilitate the transfer of funds to the seller and relevant authorities.
- Organise Insurance
Ensure that you have building insurance in place from the settlement date, or even earlier if specified in your contract. Discuss with your conveyancer to confirm insurance requirements and arrange coverage with your insurance provider.
What Happens on Settlement Day?
On settlement day, your conveyancer will coordinate the exchange of documents and funds with the seller’s representatives and financial institutions. The essential steps include:
- Completion of Financial Transactions: The balance of the purchase price, along with any adjustments, is paid.
- Transfer of Legal Documents: Legal documents such as the title and transfer documents are exchanged and lodged with the relevant land registry, for example, NSW Land Registry Services (NSW LRS).
- Registration of the New Owner: Your conveyancer will register the property in your name, officially transferring ownership.
- Release of Keys: Once settlement is complete, you’ll receive the keys to your new property.
Ensure all preparations are completed on time to avoid delays. If any issues arise, maintain communication with your conveyancer and lender to resolve them promptly. Being proactive and prepared will help ensure a smooth and stress-free settlement process.
Delays can result in different consequences, including additional costs, penalty interest or a Notice to Complete. This notice gives the buyer a specific period to settle, this is commonly 14 days. Failure to do so can result in a breach of contract where the seller might terminate the contract, and the buyer could end up losing their deposit.
Contact our experienced conveyancers at Bangalow Conveyancing on (02) 6687 0548 to ensure all necessary documentation and funds are prepared well in advance in the final steps of your property settlement. Read our other blogs for additional insights and tips on property transactions.
