Property settlement checklist

What is property settlement?

Property settlement is the process where the seller of the property will pass the keys onto the buyer. This process is facilitated by your legal and financial representatives and is the point where your lender will disburse the funds for your home loan.

When does property settlement start?

Generally, settlement takes place around 6 weeks after contracts are exchanged. Your property conveyancer or solicitor can check and negotiate the settlement period with the seller. The timing may differ for off the plan contracts.

What do you need to prepare prior to settlement day?

Prior to settlement day you need to prepare the following:

  1. Review and understand the contract of sale and any relevant agreements.
  2. Confirm the date, time and venue for your property settlement
  3. Obtain a copy of the strata report and review for any issues or special levies.
  4. Review and verify all financial information, including mortgages, strata levies, and debts associated with the property.
  5. Obtain a final title report to verify the ownership and clear any title issues.
  6. Prepare and exchange a settlement statement outlining all financial transactions related to the property.
  7. Review and resolve any inspection issues or negotiate repairs.
  8. Coordinate the transfer of utilities and other services.
  9. Arrange for the transfer of insurance coverage.
  10. Review and verify the condition of the property prior to closing.
  11. Ensure that you have all necessary identification and documents required for the settlement meeting.
  12. Arrange for payment of stamp duty and any other fees or taxes associated with the transfer of ownership.

It is important to consult a conveyancer or real estate lawyer to ensure all steps are properly completed and to avoid any legal issues.

What happens on settlement day?

You will need to complete a few legal and admin requirements before the property is officially passed on to you. The following checklist will help you prepare for settlement day.

1. Conduct a final pre-settlement inspection

Inspect your property in the morning and confirm that the condition is the same as you last inspected and exchanged contracts. Sometimes, you may not necessarily be able to do the morning of your settlement, but always ask your legal representative for best approach.

2. Did you receive a settlement statement?

  • You should receive a settlement statement to be approved by you from your solicitor just prior to property settlement. The statement should show:
    • The funds required for settlement
    • Strata levies
    • The council rates.
    • Water / sewerage rates
    • Stamp duty
    • Registration fee
    • Direction for payment

The statement shouldn’t include electricity and gas charges as the seller will usually close their energy account on the settlement date. This means you will usually need to setup electricity and gas for the property.

3. Collect your keys

Settlement day is the day you collect your keys. Congratulations on your first property purchase!

4. Off-the-plan defect liability period

If you have purchased an off-the-plan apartment or house, it is likely you have a defect liability period specified in your contract where the vendor is still legally obligated to fix any potential defections. In NSW this is typically a 90-day period or 3 months in the standard contract, however best check your contract with your solicitor to ensure this is the case.

It is best to hire a professional to conduct a pest and building inspection report.