The Settlement Process for Buyers
Wondering how settlement works when you are buying property? Here’s a simple outline of the settlement process broken down in 13 steps.
- Offer & Acceptance. When we receive your Offer & Acceptance Contract, we check it has been completed correctly and that there will be no unexpected matters arise for you (such as extra Stamp Duty).
- Authority to Act. We prepare and ask you to sign an Authority to Act, providing you withan information pack. At this stage we enter the critical dates into our system.
- Finance and Special Conditions. If required, we check the progress of your finance approval.We check all conditions on the contract have been or will be satisfied, so that the contract becomes ‘unconditional.’
- Title Search. We will do a search to obtain the Certificate of Title and other relevant documents. From these, we check the existence of limitations on the titlesuch as easements and rights-of-way and identify other encumbrances such as a mortgages and caveats that will need to be removed prior to settlement.
- Prepare unconditional documentation. We send you a copy of the title, Transfer of Land and an Initial Settlement Statement. The initial statement is an estimate – you’ll get a final statement later.
- Settlement Booking. We ensure your lending institute or bank is prepared for settlement and book the appointment for settlement with them and the seller’s agent.
- Tax and rates adjustment. We adjust rates and taxes, ensuring there is enough money available to complete the purchase successfully. We ensure there are no outstanding water or council rates amounts owing on the property, and check for outstanding special government levies. These might include underground power levies or amounts payable on outstanding local government work orders. We ensure there are no outstanding strata levies, if applicable, and we ensure you get the First Home Owner rate of duty, if applicable.
- Submit an EAS. We submit an Electronic Advice of Sale (EAS) to advise the Water Corporation, Office of State Revenue and Local Government Authorities of the impending settlement.
- Transfer Duty. We ensure the Offer & Acceptance and Transfer of Land are lodged for stamp duty assessment prior to settlement. We will attend to payment of Duty at the Office of State revenue.
- New Mortgage. We liaise with your lending institution to ensure that there are no delays with the new mortgage being ready for settlement. Please note your new lender will require a Certificate of Currency of Insurance when you return the mortgage documents. The insurance is required to be a policy paidin advance for12 months.
- Attending settlement. We attend settlement on your behalf and then notify you and your real estate agent that settlement was successfully completed.
- Possession. Hooray! At this stage you may take possession of the property. The real estate agent will be holding the keys.Please note as per condition 6.3 of the General Conditions– Principal residence limited occupation, you do not take possession of the property until 12 noon on the day immediately following settlement.We’ll send out any final documentation to you straight after settlement.
- Final Title Search. Several weeks afterwards you will receive aLandgate search or the Duplicate Certificate of Title to confirm the change in ownership. This documentation will show you as the registered proprietor of the property.
Ask for a quote on our Buyer’s Settlement Services.