If you have or are considering selling property, you are probably wondering what the settlement process is. Below is a typical settlement process from the sellers perspective. Please note this is a typical guide only and that the actual process may vary depending on your situation.
Upon receiving your contract
1. INITIAL CONTACT You will receive a call or text from our office to advise that we have received a copy of the contract of sale and instructions from the real estate agent.
2. INTRODUCTORY LETTER You will receive via email our introductory letter together with a client information sheet for you to complete and return. If you have a mortgage over the property we will include the relevant discharge authority or instructions on how to submit one with your bank. If you are selling with a market value of $750,000 or above we will instruct you on how to obtain your ATO Clearance Certificate.
3. SETTLEMENT DOCUMENTS Once the contract of sale is unconditional you will receive a set of documents that require completion along with a settlement statement outlining the amount due to you after settlement. Within these documents will be a required identity check. Please ensure you read all documents carefully and talk to your conveyancer if you have any questions.
4. DISCHARGE OF MORTGAGE Your conveyancer will liaise with your bank to ensure that the discharge of mortgage is ready in time for settlement. This takes approximately 10 working days from signing the discharge authority. Please supply us with contact details for your banker and any necessary information regarding your discharge of mortgage.
5. SPECIAL CONDITIONS We will ensure that any special conditions on the contract are fulfilled by the required dates.
6. TRANSFER DOCUMENT You will receive the transfer of land document for signing in the post after it has been signed by the buyer. Please note you may prefer to attend our office to sign this document and we can also complete your verification of identity. The transfer of land document is usually not ready to be signed until 7 working days prior to settlement.
7. PRE-SETTLEMENT INSPECTION Please ensure that all items in the home are in good working order prior to the buyer’s conducting their final inspection. The final inspection should be completed at least 5 business days prior to settlement.
8. NEW ADDRESS NOTIFICATION Please notify Australia Post, your electricity, gas, internet and telephone service providers, your home and contents insurance company and any other home service providers of your new postal address. The buyer’s agent will notify the water corporation, local authority, strata manager and the office of state revenue that you are no longer the owner of the property.
9. FINAL SETTLEMENT STATEMENT Your final statement is prepared detailing your banks final payout figure and any disbursements made to the relevant authorities showing the exact balance due to you.
10. SETTLEMENT ATTENDANCE Once all parties are ready to book settlement we will confirm with you the time in which settlement will take place. Settlement takes approximately 15 minutes. We will repay the mortgage (if applicable), and the balance of funds will be deposited as per your instructions. You and the real estate agent will be notified immediately and we will send a final confirmation letter via email.
11. KEYS The keys should be handed in by 12 noon the following day if occupied or as arranged with your real estate agent.
There you have it - the basic settlement process when selling a property. If you have any questions about this or conveyancing in general, feel free to contact the team at C&R Conveyancing Perth South who will be more than happy to help.