So you’ve got a new loan through Smartline Rockingham and you’ve found the property of your dreams. After having an offer accepted, you agree a settlement date with the seller so you can sign the paperwork and receive the keys.
So what is settlement?
Settlement is the formal, legal process for buying and selling property. Your financial and legal representatives all agree to meet to exchange the money and sign all of the contracts over to your name.
The settlement date is normally 6 weeks from when you have an offer accepted, although this can be negotiated to suit both the seller and the buyer. When the seller has already moved out into another property they may be keen to have a quick settlement so that they receive the funds sooner.
What happens on the day?
Your solicitor will meet with your financial representative (lender) either in person or on the phone. They will exchange documents, contracts and the balance of the purchase price will be paid to the seller via your financial representative.
Your lender and solicitor will look after everything and let you know what you need to organise ahead of time. Your solicitor will carry out checks to make sure the seller is who they say they are and that there’s no other owner of the property.
Once the documents have been exchanged, you will be registered as the new owner.
Just before settlement day you will complete a final inspection of the place you are purchasing. This is to check that everything is in suitable condition and all of the fixtures listed on the contract of sale are in place e.g. dishwasher.
If you have any questions about the process, it’s best to contact your solicitor and broker / lender.
Once settlement is finished the agent will call you to congratulate you on your successful purchase and to collect the keys.
After settlement, you’ll see your loan appear within your banking and you will start making repayment on that loan. Responsibility for rates, council fees and maintenance of the property will transfer to you.
While the process can be complex and drawn out, it’s worth it in the end. Once you get those keys and move into your new property you will breathe a sigh of relief and start making memories for years to come.