Settlement Day – How long after settlement can I move into my new home?
For every buyer, the biggest day after finding out that their offer has been accepted is settlement day.
After this period, which can vary, but is often 30 to 90 days, the day has finally arrived to complete the sale.
Here’s what happens on settlement day.
STEP ONE: Pre-settlement inspection
The buyer may decide to undertake a final inspection of the property to ensure that nothing has been altered substantially since the offer was accepted. Some buyers will bring a professional to do this for them, however the majority will be happy to take a quick look around themselves. This should ideally be organised for a few days prior to the actual settlement.
STEP TWO: Documents and cheques exchanged
The next step is for the paperwork and the funds to be sorted. Payment will be made to yourself by the buyer, or by their lender, and deposit monies will be released. The real estate agent will take their commission.
Occasionally, reimbursements will be organised in regards to council rates or taxes paid. The vendor will pay up to and including the date of settlement, but is usually paid by the buyer for the portion of the rates during which they will take ownership.
STEP THREE: Ownership exchanged
The keys are then handed over after the agent is advised by both the buyer and seller, in writing, that settlement has been finalised. Some buyers will have their removalists ready to move on the day, however delays can occur.
At this point, the seller no longer own the property. The sale is complete and you are free to collect the keys and move into your new home!
Other popular questions about settlement day include:
What time does settlement occur?
Settlement day happens on a time and place agreed upon by both parties.
How long does settlement take?
If the buyer is also flexible, then chances are that a seller will agree on 30, 60 or 90 days. A 30 day settlement is most common.
How long after settlement do I get paid?
After settlement, your lender will draw down your loan – debiting the amount they’ve paid at settlement from your loan account.