The settlement process
So you’ve found a buyer for your property, what’s next? We explain what’s involved during the settlement process.
Understanding what actually happens during this period can help you feel prepared before the settlement process begins and make this time something to look forward to.
What is settlement?
Settlement is the official process of signing and lodging necessary documents and transferring title ownership of a property to the buyer on an agreed day. In this time, as the seller, you will also receive the remaining funds for the sale of the property from the buyer’s lender. The transfer ownership of the property can vary between each state and territory, so it’s important to research this beforehand. Your legal representative will prepare the paperwork on your behalf.
Preparing for settlement day
Using the service and advice of professionals like a conveyancer or solicitor who understand what’s involved during the process can help you along the way. Your solicitor or conveyancer can also advise you on the total funds you will receive from the transaction before the day.
If the property you’re selling is the one you’re currently residing in, you’ll want to prepare to move out before settlement day. This may involve hiring removalists, disconnecting utilities and ensuring your property is left in a reasonable condition for the new owner.
The great thing about having a solicitor or conveyancer is that they will be represent you on the day. On settlement day you will receive the funds from the sale and the transfer of ownership will occur.
Sometimes, settlement days can be delayed due to financing problems or missing documentation. In the event that this occurs, speak to your legal team about your eligibility for compensation for the delayed settlement period. Laws for delayed settlement are different for each state, so it’s important to check this with your legal representative.
The legal representatives involved usually send out a final letter confirming the finalisation of the settlement and that the transfer of funds have occurred.
The settlement process isn’t complicated, especially when you have the right people by your side.
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- Chapter One : Things to consider before investing in property
- Chapter Two : Determining where to invest
- Chapter Three : Investment properties by dwelling types
- Chapter Four : Finance for your investment property purchase
- Chapter Five : How to invest in property
- Chapter Six : Adding value to your investment property
- Chapter Seven : Positive and negative gearing
- Chapter Eight : Getting your loan
- Chapter Nine : Selling your investment property