You finally found the house you love. Your offer gets accepted, the property becomes unconditional and now you are counting down the days until settlement. Now what? The good news is the difficult work’s done. To ensure a smooth settlement, it’s good to know what’s ahead. Here are four simple tips to guide you through the remainder of the property settlement process.
- Understand property settlement
Property settlement is the legal process that transfers the ownership of a property from one owner to another. The balance of the sale price is paid and usually conducted by your legal and financial representatives and those of the sellers. The settlement date is agreed to in the contract, with most scheduled between 30 and 90s days from the contract date.
- Arrange a pre-settlement inspection
A seller must hand over the property in the same condition as when it was sold. A good way to ensure the vendor is on course to meet this obligation is to inspect the property in the time leading up to settlement. Ideally 2–3 days before settlement. Make sure it’s still in the same condition as when you signed the contract. In particular, check anything you specifically included in your contract.
- Organise building and contents insurance
In Queensland, the property is at the buyer’s risk from 5.00 p.m. on the first business day after the Contract date. You should immediately contact your insurer or insurance broker to arrange a cover note of insurance for the property immediately after you have signed the Contract. Although you have until 5.00 p.m. on the first business day after the contract date, you should be careful to arrange this insurance coverage immediately.
- Apportion outgoings – make sure you are aware of the shared costs & stamp duty.
The conveyancers acting on behalf of the seller and yourself will need to work out the share of rates and other charges each party must pay. While the seller is responsible for rates up to and including the day of settlement, you as the buyer and new owner are responsible from the day after settlement. The exact amount you will be held responsible for will be laid out in what is known as a settlement adjustment statement. This statement will also outline your stamp duty to pay on the sale.
Once everything has been settled, your lender will debit from your loan account the amount they paid at settlement, and then you’ll need to pay the land transfer duty.
After that, you’re free to pick up the keys and move in and enjoy your new home.
If you have a settlement coming up or are thinking of selling the AW team is always here to help.
Give us a call on 07 5430 0888 or email info@amberwerchon.com.au