Settlement Day Survival Guide
Settlement day is one of the most significant milestones in your property journey. It’s a day filled with anticipation, especially for first-time home buyers. But with the right preparation, you can make sure it goes off without a hitch.
Understanding Settlement Day
Settlement day marks the official transfer of a property’s legal ownership from the seller to the buyer. Typically occurring four to six weeks after contracts are signed, this is when the deal is finalised, and both parties exchange what’s owed.
On this day, the seller receives payment through a trust account (although it might take up to 24 hours to process), and the buyer gains possession of the property keys. From this point forward, the buyer is responsible for all property-related costs, including maintenance, insurance, and utilities, whether they’re moving in straight away or planning to lease the property.
What Happens on Settlement Day?
The buyer’s lender will release the funds, or “draw down” the loan, they’ve approved. Additionally, the buyer needs to cover all outstanding fees associated with the purchase, such as legal fees, stamp duty, and possibly Mortgage Lenders’ Insurance (LMI).
Behind the scenes, the buyer’s and seller’s conveyancers or solicitors are working to finalise the transaction. They coordinate the transfer of funds, oversee the signing of crucial documents, and make final adjustments on financial responsibilities like council rates and utilities.
Once everything is in order, the conveyancers ensure that the title deeds are transferred from the seller to the buyer and lodge this documentation with the titles office.
How to Prepare for Settlement Day
To ensure a smooth settlement day, buyers should:
- Conduct a final property inspection as close to the settlement date as possible.
- Ensure all funds are transferred well in advance, as financial transactions, especially between different banks, can take a few days.
- Confirm that all legal and mortgage paperwork is signed and in order.
For sellers, particularly those buying and selling simultaneously, it’s wise to aim for a simultaneous settlement. This approach helps avoid the need for costly bridging finance and prevents the hassle of moving twice. By settlement day, sellers should be fully moved out and have arranged for utilities to be disconnected, as they will no longer have legal access to the property after this day.
Ready for a Seamless Settlement Day?
At Love & Co, we’re here to guide you every step of the way. If you’re preparing for settlement or need support throughout your property journey, our dedicated team is ready to assist you. Contact us today to ensure a smooth transition into your new home or to discuss any property needs you might have. Let us help make your settlement day a success!