You’ve found your dream property, had your offer accepted, and now there’s just one last yet very important milestone to achieve – settlement day. The anticipation has been building for weeks! Are you ready for the big day?
Settlement day can be both exciting and stressful. As your mortgage broking team, we’re here to help you make sure that everything goes smoothly and according to plan. In this article, we’ll provide and overview of what to expect and some tips to prepare for a successful property settlement.
What is settlement day?
Settlement day is the day ownership of a property is legally transferred from party to another. Simply put, it’s the day you get the keys to your new home. While your conveyancer takes care of the finer details and works with your mortgage broker for the financing, you must also follow all sorts of regulations and procedures that they will explain to you, including those required by the lender and building insurance provider. The actual date settlement day will be outline on the sales contract. Altitude Capital works with the Conveyancer in consultation with you to confirm the timing and review of the contract before signing it.
What actually happens on settlement day?
When settlement day arrives, make sure you have done the following:
- completed a final inspection of the property;
- organised building insurance, which should be as soon as the seller signs the contract; and
- worked with your conveyancer to complete and submit all the necessary documentation to transfer the property title to your name.
On the big day, your home loan provider and conveyancer will arrange the following with the seller’s representatives:
- the balance of the purchase price, along with any government fees and duties, is settled
- all necessary legal documents are completed and lodged with the respective agencies
- the certificate of title is transferred to your name and the property is legally transferred to you.
Once the paperwork is completed successfully, the settlement is final. Congratulations! You can finally get the keys and are officially the new owner.
- See you mortgage broker early – To ensure a hassle free settlement day, seek professional advice from experts who understand the process. Talk to us, your mortgage broker, even before you start looking for a property. We can assist with organising pre-approval for a home loan and will be here with you every step of the way from property search to loan application, settlement day and beyond.
- Find a reputable conveyancer – A conveyancer specialises in property law and helps you to understand your responsibilities and rights in terms of the settlement process. They also oversee the legal requirements and paperwork involved in a property purchase. They ensure the title is correctly transferred, or conveyed, from the seller to you. If you need help finding a reputable conveyancer, let me know. We will be happy to make an introduction to one we work with regularly.
- Negotiate a date that works for you – Remember that you may be able to negotiate the settlement period with the seller before signing the contract. Usually, at auctions, the settlement period is in the contract, but you may still be able to coordinate with the sellers agent to see if their party would be open to a different date. This could be useful if you’re moving from one home to another and need to plan the timeframe. The settlement period begins on the contract signing day and is usually between 30 and 90 days. This will give you enough time for finance to go through, complete the paperwork and make the necessary preparations. It can take time for your lender to approve your loan and issue the paperwork, so consult your mortgage broker about a suitable settlement period.
- Be Vigilant about paperwork – It’s our responsibility as your mortgage broker to get your loan application submitted and to ensure that your pre-approval goes smoothly. We work closely with the conveyancer to make sure that the settlement pushes through when it’s expected. Your responsibility is to provide and complete all the required details on the paperwork and return them on time to avoid delayed loan approval and issues with the settlement. Paying attention to detail is crucial. Remember that you can always ask me conveyancer and lawyer referrals if you need legal advice on understanding the process and the paperwork involved.
- The result is worth it – As settlement day approaches and you feel excited, it’s also normal to feel nervous at the same time, but try not tp stress too much and enjoy the process. When you have a team of professionals on you side, including a reliable mortgage broker, things are likely to go to plan. We are here to make sure everything goes smoothly, from property search and loan pre-approval up to settlement day and beyond. Please do get in touch early so we can start planning.
Additional Source –https://www.realestate.com.au/advice/what-happens-on-settlement-day/