Buying a property, what is Settlement?

After the cooling off period, your solicitor or conveyancer will arrange contract stamping. You have three months from the contract date to pay, but you must pay before settlement.

The settlement amount is calculated and agreed by conveyancers for the buyer and seller. This amount will include adjustments for unpaid rates and taxes or any advance payments. The conveyancer will then inform your lender of the total needed at settlement.

It is a good idea to arrange an inspection of the property immediately before settlement, to make sure no damage has occurred since you agreed to buy, and the seller has not removed anything that was included in the sale.

Your lender will ask you to deposit the difference between the loan amount and the settlement sum in an accessible account ready for settlement. Usually, your lender will send a representative to attend at settlement and pay for the property for you.

Your conveyancer will check that documents are in order to finalise legal transfer, and either the conveyancer or the agent will collect keys on your behalf and hand them to you.

Following settlement, your conveyancer will attend to any final legal requirements to ensure you are registered on the title as the new owner.

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