After spending months searching and deciding on the property of your choice, you’re ready to seal the deal. However, the process can be more complex than you think and involves more than just paying for the property and picking up the keys. Understanding the basics of property settlement can help you navigate through this legal framework and work out a deal that is in your best interest. Here are a few things to keep in mind before you finalise the settlement offer:
Property Settlement is the legal process to transfer the ownership from the property seller to the property buyer. This process is conducted conventionally by the legal and financial representatives of both parties.
While you can negotiate the settlement by yourself, legal and financial representatives are professionals who will aim to protect your interest by ensuring the documentation is correct. They are also in a better position to advise you on paying taxes, stamp duty and other legal paperwork required.
The date of the settlement is set by the seller of the property. Usually, the settlement period is between 30 to 90 days from the day the contract of sale is signed. However, this can be negotiated.
The best you can do is make sure all your documents are in line and you’ve crossed off each of the items on the below checklist.
Your legal or financial representatives will be the professionals managing this for you from liaising with the bank to arranging the meeting with the seller and their representatives.
They will make sure that other fees like transfer duty, taxes etc have been taken care of. You don’t need to be present on the settlement day. All documents can be signed by you and handed over to your representative beforehand. Once this is completed, you can legally take possession of the property.
Until the day of the settlement, the rates and other fees of the property were the responsibility of the seller. Now that ownership has been transferred and you are the titular owner of the property, after the settlement day these expenses are now your responsibility.
Property settlement can be exciting and stressful at the same time. Just remember to find representatives you trust and double-check your paperwork thoroughly. After all, this will be a decision you will be living with for a long time. The best you can do is to know what to expect and prepare for the same.
For more information property settlement, read our article on 7 ways to reduce your apartment settlement risk.
Whether that be a house and land package, townhouse or apartment we can help you through each step of your buying journey. Contact us by phone on 1300 123 463 or email on firstname.lastname@example.org and let's start a conversation.