What is Settlement?
Settlement is the final legal proceedings in a real estate transaction that passes legal title of the home from the seller to the buyer and the balance of the purchase price is paid.
Different settlements follow different processes so please use this as a guide only.
- The Settlement Agent will check to make sure that the Offer and Acceptance is completed correctly and that it matches the Certificate of Title.
- The Settlement Agent will diarise important dates such as finance approval, Building Report, Subject Sale (If applicable) and Settlement Date.
- The Settlement Agent will confirm some of the following details with you, they have received the Offer & Acceptance and are acting on your behalf, as well as confirm any conditions on the contract and any dates.
- The Settlement Agent should then send you an Authority to Act form and a Preliminary Settlement Statement.
- The Settlement Agent will keep on top of any important dates and conditions as they arise with the first being Finance Approval (Unless a Cash Offer). If finance is not approved on time both your Real Estate Agent and Settlement Agent should be following up to make sure that finance will be received or organising an extension if needed but not before discussing it with you, the seller.
- Once finance has been received the contract becomes unconditional and you should then receive a call and something in writing and a definite settlement date can be set.
- Your Settlement Agent will then have you sign the transfer of land and all finance documentation.
- Once all docs are signed the Settlement Agent will then contact the finance provider and book in a Settlement Date and Time, complete the final statement and advise everyone of the booked settlement.
- On the day of settlement the settlement agent will check the certificate of title to make sure all is clear and then they will attend settlement and make sure correct monies are paid and received and then deposit any funds into your account (if applicable).
- You will then receive the call that Settlement was successful and advise in writing to you and your agent and then attend to any outstanding rates and file your settlement for a minimum of 7 years.
All that should happen, if your Sale and Settlement runs smoothly and most do but I can say that I have had some very hairy settlements that I would rather forget and some that have made me very happy.
All in all I have had some very great clients and still keep in touch with them once the settlement has gone through.
If you would like a referral to my settlement agent, please give me a call and I’ll give you the details personally!