You’ve found your dream Warrnambool property. Your offer has been accepted. Finance has the tick of approval. Now, there’s just one final, but vital step – settlement day.
Are you ready?
Ask anyone who has recently bought a property and they’ll confirm that settlement day can be both exciting and stressful.
As Mortgage Brokers, we are on-hand to help ensure its a process that runs smoothly, and according to plan.
Below is an outline of what to expect, and some tips we have about how you can ensure there’s more excitement than stress when it comes to property settlement.
What is settlement day?
It’s THE day ownership of a property is legally transferred from one party to another.
Or, in other words, it’s the day you get the keys to your new property.
Your Conveyancer should care of the finer details, and work with us to ensure the finance is in place, there are also other regulations and procedures that need to be followed, including those required by the lender and building insurance provider.
The actual date of settlement day will be outlined in the sales contract.
Your broker will work with the Conveyancer, who will review the contract and timing before signing.
What actually happens on settlement day?
When settlement day arrives, make sure you have done the following:
- Completed a final inspection of the property;
- Organised building insurance, which should be done as soon as the seller signs the contract; and
- Worked with your Conveyancer to complete and submit all the necessary documentation to transfer the property title to your name.
On The Big Day, your home loan provider and Conveyancer will arrange the following with the seller’s representatives:
- The balance of the purchase price, along with any government fees and duties, are paid
- All necessary legal documents, including the mortgage, are completed and lodged with the respective agencies
- The certificate of title is transferred to your name and the property is legally transferred to you.
Once the paperwork is completed successfully, the settlement is final.
Congratulations! You can finally get the keys and are officially the new owner.
Preparation tips
- See your mortgage broker early
To ensure a hassle-free settlement day, seek professional advice from experts who understand the process. Talk to me even before you start looking for a property.
I can assist with organising pre-approval for a home loan and will be here with you every step of the way from property search to loan application, settlement day and beyond.
- Find a Conveyancer
A Conveyancer is across property law and will help you understand your responsibilities and rights in terms of the settlement process.
They also oversee the legal requirements and paperwork involved in a property purchase.
They ensure the title is correctly transferred, or conveyed, from the seller to you. If you need help finding a Conveyancer, let me know.
I will be happy to make an introduction to one I work with regularly.
- Negotiate a date that works for you
Remember that you may be able to negotiate the settlement period with the seller before signing the contract.
Usually, at auctions, the settlement period is in the contract, but you may still be able to coordinate with the seller’s agent to see if their party would be open to a different date. This could be useful if you’re moving from one home to another and need to plan the timeframe.
The settlement period begins on the contract signing day and is usually between 30 and 90 days. This will give you enough time for your finance to go through, complete the paperwork and make the necessary preparations. It can take time for your lender to approve your loan and issue the paperwork, so consult your mortgage broker about a suitable settlement period.
- Be vigilant about the paperwork
It’s my responsibility as your Mortgage Broker to get your loan application submitted and to ensure that your pre-approval goes smoothly. I work closely with the Conveyancer to make sure that all steps necessary are completed. Your responsibility is to provide and complete all the required details on the paperwork and return them on time to minimise delayed loan approval and issues with the settlement. Paying attention to detail is crucial. Remember that you can always ask me for Conveyancer and lawyer referrals for legal advice on understanding the process and the paperwork involved.
- The result is worth it
As settlement day approaches and you feel excited, it’s also normal to feel nervous at the same time, but try not to stress too much and enjoy the process. If you have a team of professionals on your side, including a reliable Mortgage Broker, things are likely to go to plan. I am here to make sure everything goes smoothly, from property search and loan pre-approval up to the settlement day and beyond. Please do get in touch early so we can start planning.
