Congratulations! The hardest part is done. Once the excitement settles down, you will need to focus on the items that need to be completed in order to be ready for settlement.
This exciting time does come with a fairly lengthy and systematic process that at times can be confusing and complicated. Below provides a snapshot of what needs to take place before you obtain the keys to your property.
Deposit and Contract of Sale
If you have purchased at an auction then you need to pay a deposit, generally 10% of the purchase price within three business days. On auction day you can transfer a holding amount of around $1,000 using your phone. The outstanding balance can then be transferred on the next business day via EFT.
A conveyancer needs to be involved in t arranging the correct documentation and distribution of monies at settlement. Both legal parties work with the bank to ensure all land transfer docs are signed correctly and the settlement monies are distributed correctly. No settlement can take place without a conveyancer involved.
Finance and Mortgage Contract
Following the purchase of the property, you will need to get formal approval from your lender. To achieve formal approval, the lender will need a valuation on the property. The valuation will be ordered by your Mortgage Broker and generally takes place within 3 business days. Once Formally Approved, your Mortgage Broker will help you navigate the loan contract to ensure you understand the loan you are obtaining and sign the required documentation correctly.
In the week leading up to your settlement, everything comes together. Your conveyancer will ensure that the settlement date, time and place is agreed to by the lender and the vendors conveyancer. You will be required to make sure any additional monies needed at settlement are sitting in your nominated ‘settlement shortfall’ account ready for access on settlement day.
Settlement is essentially the transfer of a property from one owner to another. Typically known as at the end of the purchase process whereby you take legal possession of your new home. In a nutshell, settlement is when the buyer transfers the remaining balance of the purchase to the seller and the seller passes on the title or ownership to the buyer.
This is a very important event which needs to be carefully prepared for and once this process has been successful then it is time to pick up the keys and celebrate!