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This is the day upon which the sale is made
final. That is, the process of
conveyancing is completed and the buyer is able
to take possession of the purchased property.
It normally takes place about six weeks after
contracts are exchanged.
Traditionally, settlement was a physical
meeting of all the interested parties in which
the final amount was transferred to the seller,
and all relevant documents are checked and
exchanged. This is still the case, however the
buyer and seller no longer need to attend the
settlement meeting as lawyers are
representative of their interests.
At settlement, the buyer must ensure that
the following are secured:
- That clear and good title is obtained
from the seller (in the form of a
certificate of title and form of
transfer);
- That all requirements of the financial
lender are satisfied so the funds for the
settlement will be released.
Settlement cannot be made if the funds for
sale are not available to be released;
and
- That arrangements are made for the
possession of the property.
It is advisable that in order to be sure the
certificate of title is good and correct, it be
compared with the copy gained by the
conveyancer from the land title office.
Payable amounts
The following amounts are payable at
settlement:
- Council, and water rates; and
- Land taxes (where appropriate).
Usually other amounts, such as
electricity, gas or telephone charges are not
taken into account and are settled
privately between the buyer and seller.
Time and place of settlement
The time and place of the settlement is
determined by the seller of the property and
will be where the certificate of title is held.
The timing of settlement will usually be four
to eight weeks after contracts are exchanged.
This is considered the minimal time in which
the process can be completed.
As most property is mortgaged the site of
the settlement will be a bank or building
society office. Where the seller owns the
property outright settlement will take place at
the office of the seller's solicitor (or
licensed conveyancer).
Often, the keys are handed over at the time
of settlement so that the buyer can take
possession of the property, but generally the
keys will be left with the estate agent
handling the property for the buyer to pick up
at a later date.
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