| Property Settlement Tips for Buyers
Property settlement is the process by which ownership of a property is legally transferred from one owner to another. This can involve a lot of legal paperwork, which is usually taken care of by your conveyancer.
The settlement process concludes with you taking legal possession of the property. To get started, you will need to nominate your conveyancer on the Offer Acceptance document. Alternatively, you can nominate one later and add T.B.A. on the Offer and Acceptance document. Each state has its own legal processes that must be followed, but most people use a conveyancer or solicitor to help with the settlement process.
It’s important to note that there may be differences in the settlement process depending on where you live. For example, most buyers have a cooling-off period, but this period may vary from state to state, or depending on the contract terms or if the property was sold by auction. Generally, the cooling-off period lasts for 5 business days, although various factors can affect this.
The settlement process itself typically takes between 30 and 90 days. The length of the settlement period is set out in the contract of sale and must be agreed upon by both the buyer and seller. It is crucial to ensure that everything is clear and precise, outlining all necessary conditions, timing, required actions, and identifying who is responsible for them. By being thorough at the outset, potential disagreements and delays can be minimized.
If there are any special conditions in the contract, such as building and pest inspection clauses, it is essential to take care of these by the stipulated date. Otherwise, you may lose the benefit of these clauses. Your conveyancer will manage most of the paperwork involved in the settlement process, including the initial settlement statement, title search/certificate of title/transfer of land, identification of encumbrances, stamp duty application/electronic advice of sale (EAS), and authority to proceed to settlement. These requirements vary from state to state.
Your conveyancer will also take care of various rates and taxes, including ensuring that there are no outstanding water or council rates owing, checking for outstanding special government levies, and ensuring there are no outstanding strata levies.
Before settlement is finalized, it is important to conduct a final inspection of the property. The property should be in the same condition as when the contract of sale was signed, and the contract should specify which fittings and fixtures are included in the sale and what can be removed by the seller. During your final inspection, check for any damage since the contract was signed, ensure all appliances and fittings are working, all chattels and rubbish have been removed, and the gardens are tidy with no plants having been removed.
Finally, it is a good idea (and often required by lenders) to take out building and contents insurance effective from the date the contract is signed.
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