A “Settlement” is the process of changing the title from the name of the Seller to the Buyer, paying the purchase price to the Seller, removing the Seller’s mortgage (if any) from the title and registering the Buyer’s mortgage (if any) on the title.
Where you are the:
- Buyer, and you are borrowing to complete the purchase, we liaise with your lender to ensure they make the loan funds available to the Seller at the nominated settlement time, or
- Seller, and there is a mortgage on your title, we liaise with the lender to ensure that it receives the amount necessary to pay out the mortgage at settlement and removes the mortgage from the title to allow the property to be transferred into the Buyer’s name.
If either of the above applies to you, you must sign any documents and do anything else which your lender requires you to do promptly to ensure that there is no delay to settlement. If settlement is delayed by more than three business days and it is your fault (including your lender’s fault) the other party may claim penalty interest against you.
Where you are the Buyer we arrange for the contract to be assessed for stamp duty, collect the duty from you and pay it on your behalf.
Often the Seller has paid Local Government rates and water rates which cover a period beyond the settlement date. Therefore, the Buyer must compensate the Seller for that part of those rates. We calculate the correct amount and add it to the purchase price as part of the process.
The contract often contains special conditions which must be satisfied before settlement can proceed. If a condition which is your responsibility is not clear, we will advise you what you need to do to comply. We also check that the other party has fulfilled their contractual obligations before allowing settlement to proceed.