Things To Expect During Your Settlement Period
Updated: Jul 14, 2022
Selling a property successfully is a tremendous accomplishment – and one that should be celebrated. However, before you pop the champagne, it's a good idea to familiarize yourself with what you could encounter during settlement.
On both sides of the selling/buying fence, the time leading up to settlement is fraught with expectations – and, at times, tension. Your potential buyer will want to get their hands on that crucial set of house keys. As the seller, your priority is different: you want proof that the final payment on your property was received in order to verify that the property sale transaction was completed.
Understanding the procedure will help you get there without a headache.
What is a Settlement Period?
This is the final stage in the sale of your home after you, as the seller, exchange contracts of sale with the buyer. Any financial obligations and responsibilities related to the property must be addressed on settlement day.
Meanwhile, the buyer (or their lender) pays the balance of the agreed-upon price, and title is transferred to the buyer, who now has both physical and legal ownership of your property.
What May Delay Property Settlement?
The settlement period varies and might range from 28 days to 90 days. The precise date of your own settlement term is something that both parties agree on and is explicitly mentioned in the contract of sale paperwork.
Delays do occur, and financial issues are a typical factor. With so many documents to sign and complete, anything like missing a signature on one area of a form or not having access to the proper identification can all contribute to a lender delaying processes. It's one of the reasons why hiring an expert conveyancer may save you time and money.
Depending on which party causes the delay in settlement and the state in which the transaction occurred, the penalty for settlement day delays may include interest and/or additional expenses. For example, making time for a final inspection may potentially create a delay, particularly if the buyer believes you did not leave the home in the condition they intended. Valuations may sometimes be difficult, and if the prospective buyer's financing falls through, your solicitor can assist you to understand your choices.
As a seller, you have rights, but you also have responsibilities, therefore discussing your obligations with your conveyancer is always vital.
Steps Towards Settlement
It is vital for a successful settlement that the property matches its title and records. When a lender arranges for a valuation, your potential buyer or buyer’s advocate will look for a variety of data, including property dimensions that match what is in the records.
The transfer of property title is an important step in the settlement process. Your solicitor will handle this procedure, but because it is your signature on the contract, it is critical that you are aware completely.
Congratulations On Your Sale
Selling a property isn't always easy, especially in a speculative market, so reflecting on your accomplishment and doing something unique to commemorate the occasion is a great way to round out your settlement day in style.