Settlement Tips for Home Buyers
After successfully buying your home, whether it be through ferocious bidding at auction or clever negotiating tactics during a private treaty, the next milestone in your purchasing journey is settlement. Here’s what you need to know.
1. Understand Settlement Property settlement is the official process where the property ownership passes from the seller to you, and you pay the balance of the sale price. This is usually conducted between the seller and buyers legal and financial representatives.
2. Arrange your final inspection As the buyer, you are entitled to an inspection of the property at any reasonable time during the week before settlement. This is a great opportunity for you to check that the seller is handing over the property in the same condition as when it was sold. Check all the items listed in the contract are at the property and in the right condition.
3. Organise insurance Most lenders usually recommend you take out building and contents insurance effective from the date the seller signs the contract. This is to safeguard their interest in the property, as well as your own.
4. Check measurements Your lawyer or conveyancer will send you a plan of the land, make sure you cross-check that all measurements and boundaries with the Certificate of Title. Make sure to alert them if there are any discrepancies.
5. Understand outgoings All outgoings such as rates and other charges are adjusted between you and the seller. The seller is responsible for rates up to and including the day of settlement. You become responsible the immediate day after settlement.
Another cost you are responsible for paying is the land transfer duty (more commonly known as stamp duty) on the sale. Most buyers pay it at settlement, but you have up to three months after settlement to pay. You cannot receive the title to a property until the duty is paid.
For an estimate on how much stamp duty you might need to pay, click HERE
6. Collect the keys When it is all said and done, and settlement has been completed, you can collect the keys and take possession of the property. Now time to enjoy your new home and make new memories!
Is there something further you would like clarification with when it comes to settlement of residential property? Send me a message HERE, and I will be sure to assist you with your query.