What to Expect on Settlement Day
For first home buyers, there is no feeling more exciting than picking up your keys on settlement day. But what exactly goes on behind the scenes on settlement day? Read more to find out.
What to Expect on Settlement Day
For first home buyers, there is no feeling more exciting than picking up your keys on settlement day. While it may feel as if the buying process is finally over, there is still a lot going on behind the scenes to officially close the sale of the home. Here is what you can expect to happen on your settlement day.
What Happens on Settlement Day
The Sequence of Events
First, your lender will begin the finalisation process by providing the funds to the vendor. The vendor’s solicitor will then have the Registrar General register the transfer of the home into your name, giving you the title of the property. At the same time, they will register your mortgage, which will be noted on the title of your new home along with details of your home loan.
The next step is to let the agent know that the settlement is complete. This confirmation will be required in writing from both the vendor and your lender before you are able to pick up the keys. From here you will have ownership and can enjoy your new home.
Looking to buy your first home? Check out the properties we currently have for sale.
Rate Adjustments
One thing that your conveyancer will have to work out on the day of your settlement is any rate adjustments. It is common to experience last-minute rate adjustments to account for any outstanding or prepaid payments that exist on your new property on the date of your settlement. These could be water or council rates, strata levies, or any other rates that need compensating on the day of your settlement.
The most common reasons for rate adjustments is to pay back the vendor for any rates they have purchased in advance. Say the vendor paid council rates for three months in advance and the settlement occurs on day two of those three months. You will need to reimburse them for the overlap. These rate adjustments will be calculated by your conveyancer and will simply be added onto the overall price of the property. They are not something you will need to handle yourself at any point.
While all this goes on behind the scenes, you can pick up your keys and start your life in your new home.
If you’re a first home buyer looking for some advice, contact us. Check out our blog for more helpful articles on first home buying.