Settlement Day - What is it?

So, your settlement day is approaching. It’s the moment you get keys to your new home.

A lot can happen on this day, particularly if you are trying to move in straight away.

What is settlement?

Settlement is what the property industry calls the vendor handing over ownership of their property to the buyer. Your solicitor/conveyancer will take care of this for you.

Traditionally, settlements involved all representatives (lawyers and banks) physically meeting to finalise, but this is changing rapidly as digital settlements are fast becoming standard practice.

What happens on settlement day?

At the most basic level, we (your representative) will give the vendor’s representative the balance you owe on the property, usually 90% of the purchase price. The vendor’s representative will then relinquish the ownership of the property, by way of a transfer to the new purchaser (YOU!!!!)

Now that’s a very basic overview. If you have a mortgage involved…

Your lender will also participate in the settlement, to hand over the funds for the purchase. If the vendor has a mortgage, a representative from their lender will also be involved.

As your lender provides the funding, they’ll take the 'title deed' - now in electronic form- and register their mortgage against the property. This will show they have an interest in the property and need to be repaid first should you sell.

Your representative (us) will also make sure that any mortgages other lender(s) had are removed, and any rights to the property (called a caveat), are also removed. We also make sure the vendor has fulfilled all the clauses in the contract for sale to – like emptying the shed, removing rubbish and ensuring they (or any tenants) have vacated.

If you have any questions about your situation, contact me via leah@stevensconveyancing.com.au or call 0414 894 031 to discuss.

Please note that the information contained in this article is of a general nature only and does not constitute legal advice. Stevens Conveyancing does not take responsibility for any errors or omissions obtained from the use of this information.