What happens at settlement?
Your loan’s been approved, and you've found your dream home, so what’s next?
For a new homeowner, the property settlement process can seem quite overwhelming; however, with the right preparation you can ensure your settlement runs as smoothly as possible.
What is property settlement?
Property settlement is the final step before moving into your new home. It is the legal process, which involves the previous homeowner handing over ownership onto the new owner.
At this exchange, both sides will have a legal team to ensure everything runs accordingly, this can either involve a solicitor or a conveyancer.
It’s not expected for the new owner to be present at this handover, as the legal team can act as a representative for them.
What happens at settlement?
At settlement, a few things need to happen before the property is officially settled. These can include:
- The buyer may have a final inspection of the property before signing any papers.
- Your lender will make sure there are no outstanding costs on the mortgage from a third party.
- The transfer of the property will be signed off and approved, with the final payment being made.
- The property will be registered under the new ownership name with the correct government agency.
How do you prepare for settlement?
In the lead up to your property settlement, it’s important to be prepared. Follow these steps to ensure you’re covered:
- Organise a solicitor or conveyancer to help you through the property settlement process.
- Ensure the sales contract is dated with the settlement date, which is agreed on by both parties.
- Finalise money and prepare for the funds to be transferred over.
- Take a final inspection of the property before signing the settlement.
In the inspection stage, it is important to look for things such as the property’s condition since the final sale document was signed. Is it clean, has all rubbish and furniture been cleaned out, is there any damage to the building that wasn’t previously there?
What happens after settlement?
Once the papers have been signed, your conveyancer/solicitor will send you the final settlement details, including information on the money paid for the property.
Your mortgage lender will also inform you on your new loan amount and repayments. Once these steps have been finalised, it is time to move into your new home.
Home loans are a huge financial commitment, however with our mortgage protection insurance, we could cover you for those unexpected events in life where you might not be able to make your payments, to help you live with peace of mind in your new home.
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