You've purchased a home or investment property, contracts have been exchanged, the deposit has been paid and a date for property settlement has been set. So what happens in the meantime and what happens on settlement day?
Settlement day is when you finally get the keys to your new home and are able to move in. If the property is vacant, you can request access after exchange of contracts to do some painting or other minor work on the property prior to moving in but you will need to pick up and return the keys daily via the vendor's real estate agent.
Before settlement happens, however, you need to take care of a few things.
Before settlement
Between exchange of contracts and the agreed settlement date, you will need to contact your mortgage broker or lender and finalise and sign all loan documents. You will also need to get quotes from removalists, book a removalist and start packing. It's best to book the removalist for the day after settlement in case of delays on the day.
In the week before settlement, you will need to visit the property you are purchasing to conduct a final inspection to ensure that everything is in accordance with the contract and that agreed inclusions, such as curtains or a dishwasher, have not been removed.
Contact an electricity provider and phone and internet provider and let them know you will need their services at your new address from the settlement date. Also be sure to organise building and contents insurance to start on the date of settlement.
If you are buying the property as an investment, rather than your own home, now is the time to engage a property manager to advertise for tenants and vet them carefully on your behalf.
On settlement day
On settlement day itself, unless you are handling your own conveyancing almost everything will be conducted by the legal representatives of both yourself and the vendor.
The deed to the home will be sent to the titles office where your name will be registered as the new owner. Your lender will register the mortgage against the title and provide the funds to purchase the property as well as pay stamp duty and registration costs to the government.
Cheques to settle all adjustments will also be drawn up and paid out for outstanding council rates, water rates or land tax owed by the vendor. Your solicitor or conveyancer will ensure any existing mortgage on the property has been paid off and all caveats removed. He or she will also ensure that all clauses in the sales contract are fulfilled and the transfer of property and mortgage is complete.
As soon as settlement has completed successfully, your solicitor or conveyancer will contact you and the real estate agent for the vendor will release the keys to your new home to you. Usually they will meet you at the property and let you proudly post the 'SOLD' sign on the signboard at the front.
Finally, comes all the excitement of moving into your new home!
If you are purchasing a new home through a Century 21 agent, you will be in good hands and he or she will guide you throughout the process from the time your offer is accepted by the vendor to final property settlement and handing over the keys to your new home. Ensuring the entire sales process goes smoothly for both the vendor and buyer is an important aspect of their job!