November, 2007 
 
This is the day upon which the sale is made final.  That is, the process of conveyancing is completed and the buyer is able to take possession of the purchased property. It normally takes place about six weeks after contracts are exchanged.

Traditionally, settlement was a physical meeting of all the interested parties in which the final amount was transferred to the seller, and all relevant documents are checked and exchanged. This is still the case, however the buyer and seller no longer need to attend the settlement meeting as lawyers are representative of their interests.

At settlement, the buyer must ensure that the following are secured:

• That clear and good title is obtained from the seller (in the form of a certificate of title and form of transfer);
• That all requirements of the financial lender are satisfied so the funds for the settlement will be released.  Settlement cannot be made if the funds for sale are not available to be released; and
• That arrangements are made for the possession of the property.

It is advisable that in order to be sure the certificate of title is good and correct, it be compared with the copy gained by the conveyancer from the land title office.

Payable amounts

The following amounts are payable at settlement:

• Council, and water rates; and
• Land taxes (where appropriate).

Usually other amounts, such as electricity, gas or telephone charges are not taken into account  and are settled privately between the buyer and seller.

Time and place of settlement

The time and place of the settlement is determined by the seller of the property and will be where the certificate of title is held. The timing of settlement will usually be four to eight weeks after contracts are exchanged. This is considered the minimal time in which the process can be completed.

As most property is mortgaged the site of the settlement will be a bank or building society office.  Where the seller owns the property outright settlement will take place at the office of the seller's solicitor (or licensed conveyancer).

Often, the keys are handed over at the time of settlement so that the buyer can take possession of the property, but generally the keys will be left with the estate agent handling the property for the buyer to pick up at a later date.

 
Back to Index