Settlement Day: An Exciting Day for Homeowners

 Settlement Day is the last part yet most exciting day for anyone purchasing property. For the least experienced buyers, this day can be a little nerve-wrecking, emotional, and even exciting. But what exactly happens on Settlement Day?

Property settlement

From a legal standpoint, when a property is transferred from one owner to another, this is called Property Settlement. Every state has different rules and regulations regarding property settlement, and they must be complied with before the transaction can be considered as both complete and legal. Because of the complexity of these requirements and regulations, both vendors and buyers will require the aid of a conveyancing solicitor to make sure that the entire process goes as smoothly as possible.

Before making any property purchase, you should already have an idea on which conveyancer to hire as your representative.

The big day

Settlement day is the day when you complete the purchase of a property. This is where you leave your deposit for the said property and make sure that everything’s been complied with on the sales contract. The contract should also be read by the conveyancer if you are unsure of the terms and conditions.

Some of the basic content for the sales contract should include the conditions of the sale and the actions that are required to complete the sales (e.g. agreement to payment schedules)

What happens during the settlement process?

During the settlement process, the conveyancer will make sure that the sales contract is reasonable and correct. The content of the contract should benefit both buyer and seller equally. The conveyancer is also responsible for guaranteeing that there are no legal hindrances to the purchases (e.g. unpaid council rates) and that the property is registered with the proper authorities.

On the buyer’s part, he or she should make sure that the property is indeed in pristine condition, or at least in an acceptable condition as dictated in the agreement or contract. For home purchases, they need to make sure that the fixtures and fittings outlined are there and in working condition. Once that’s all said and done, they should now be ready to sign the documentation for the transfer of ownership.

Can something go wrong?

Of course, something will always go wrong with every purchase. This applies to properties as well. The buyers or conveyancers can miss meetings; give delayed cheques, and even delay the transfer of the property. If you want to avoid all of the inconveniences, I highly suggest moving in a few days after Settlement Day. This should allow you to let the dust settle and the conveyancer has the time to double check everything.