The Settlement Process for Sellers
Wondering how settlement works when you are sellingproperty? Here’s a simple outline of the settlement process broken down in 12 steps.
- Offer & Acceptance. The original copy of the contract will be sent to us by the real estate agent. We will check it over to assess any risk to you.
- Authority to Act. We need to gain Authority to act. Once you’ve signed the Authority to Act form, we can conduct the conveyancing process on your behalf.At this stage we enter the critical dates into our system.
- Special Conditions. We will check you have carried out any actions required by the contract’s special conditions, and follow up to ensure your property settlement goes as planned. This may include organising a building and/or timber pest inspection, and returning the inspector’s findings to the buyer’s conveyancer.
- 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 title that must be dealt with prior to settlement.
- Australia Post Verification. Due to Legislation requirements it is mandatory that all sellers need to be individually identified. This can be done at Australia Post. Australia Post charge a fee of $39.00 (inc. GST) per person to complete the Verification of Identity. To complete your verification you will need to provide 100% point identification. Australia Post Verification is there to protect you, giving you security knowing no one can sell your property without your knowledge.
- RCD and Hard Wired Smoke Alarms. On 9 August 2009, the State Government legislated to enforce owners and landlords to install a minimum of two safety switches (RCD) to each residential property if one or both are not already in existence.From 1 October 2009, mains powered smoke alarms must be fitted in all existing and new residential buildings prior to sale,or when a new tenancy agreement is signed for rental properties. These requirements are mandatory under the Local Government (Miscellaneous Provisions) Act 1960 section 248 and Local Government Act 1995 section 9.60, and the Building Amendments Regulations 2009, and must be complied with prior to settlement. All smoke alarms should be installed by a licensed electrical contractor and must be changed every 10 years.
- Discharge of Mortgage. We liaise with your discharging bank to ensure that there are no delays with the discharge being ready for settlement.
- Prepare unconditional documentation. We send youthe Transfer of Land, once received from the Buyer’s settlement agent, for signing and also send you an initial settlement statement. The initial settlement statement detailsshow how funds have been distributed throughout the property settlement, and includes:
- Sale price
- Agent commission
- An estimate of rates
- Our fees
- Settlement Booking. We ensure all parties are prepared for settlement and book the appointment for settlement with your financial institution (if there is a mortgage to be discharged) and the buyer’s settlement agent.
- Rates and taxes. We check rates and taxes, ensuring there is enough money available to complete the purchase successfully and ensuring you are refunded anything you have paid in advance.
- Final statement of settlement. We provide an amended settlement statement once the adjustment of rates has been attended to and ensure all government fees are calculated correctly.
- Settlement. We attend settlement on your behalf,ensuring all documents are correct and handed over to the party who will hold security after settlement.
Ask for a quote on our Buyer’s Settlement Services.