Crank the tunes and bring out the party poppers!
Nope, it’s not Grand Final day. But it sure is a landmark milestone in your building journey. Because, if WA’s a cake, you’ve just grabbed a slice all to yourself – so, are you a red velvet or a chocolate mud kind of a person? Either way, welcome to the sweet side … settlement!
And if you’re just poking your head around the blogs to learn more about the process of securing your own slice, you’re not lost! This is handy info to store for later down the home builder journey too.
What’s all the ‘hoo-haa’?
Glad you asked. Today, your settlement agent (solicitor or conveyancer) meets with your lender and the seller’s representatives to exchange documents. And then? It’s all yours, baby! Well, it’s just sand right now, but soon it’ll be your very own sandcastle *ahem* dream home, in the blink of an eye!
To keep you in the loop, we’ve broken down the settlement process smart-style:
Your lender will:
- register a mortgage against the title of your new property
- provide the funds to purchase the new property
While your solicitor / conveyancer checks that:
- the balance of the purchase price is paid to the seller
- all clauses on the sales contract are fulfilled
- the transfer of land and mortgage is registered with the title office in your state or territory
Tips for smooth sailing
We all want settlement to be as smooth as a double baked cheesecake, so here’s a few tips to make it that way. First up, contact a solicitor or conveyancer to act as your agent in the settlement process, (your broker should be able to help you with this if you don’t know where to start). Next, sign and date your sales contract with the correct settlement date (agreed to by both you and the seller) and organise all the money needed to complete the sale – this covers stamp duty, lenders mortgage insurance, and other fees and charges. This one’s super important because the title to the property won’t be transferred to your name until you have paid the stamp duty. And all the council fees and rates are now your responsibility. #adultinglife
The final stages
Finally, organise building and contents insurance (effective as of the purchase date) and speak to your utility providers (gas, electricity) because they’ll need to set you up with an account! You’ll also need to confirm the details of your settlement day. Tip: make sure you provide the correct deets – like the final amounts and payee details on the cheque. Because, once the settlement is done, your lender will draw down on your loan, debiting the amount they’ve paid at settlement from your loan account.
Pheww that’s a lot to cover and we get it, this stage can be a lot. But, we’re always here and ready to share our settlement smarts if you have any Q’s.
So, where’s the cake at?
All this cake talk has got as Googling recipes, so we’ll leave you with this final point: Once both parties have signed all the documents, they’re sent off to the titles office. That’s where you’ll be formally registered as the new owner of the property! Feeling pretty sweet, huh?