Settlement is the final stage of the property sale. This is when the balance of the purchase price is paid, ownership transfers to the buyer and the sale is completed.
Before settlement:
- Any outstanding contract conditions need to be satisfied by the required dates.
- The buyer will usually conduct a final inspection shortly before settlement.
- Your solicitor or conveyancer prepares the required settlement documents and calculates adjustments for items such as council rates, water charges and strata or owners corporation fees, where applicable.
- If you have a mortgage, your lender will usually arrange for it to be discharged at settlement, with the amount owing paid from the settlement funds.
Most property settlements are now completed electronically through systems such as PEXA, with your solicitor or conveyancer coordinating the process.
Once settlement is complete, the buyer becomes the new owner and can generally take possession of the property in accordance with the contract. Your solicitor or conveyancer will also arrange for the remaining sale proceeds to be distributed as instructed.
The settlement date or period is agreed as part of the Contract of Sale and can vary depending on the agreement between you and the buyer.
Your solicitor or conveyancer will guide you through the settlement process and let you know what you need to do before settlement day.