The information provided below is general in nature and should not be relied upon legal advice. You should call 03 5445 1000 and speak to a lawyer at OFRM about your particular circumstances.

What happens on the day of settlement?

What happens on the day of settlement?

If you have purchased and sold many properties, the day of settlement is almost just another day. But if this is one of your first property transactions, or it is moving homes the day of settlement can be daunting. This is especially so if you are buying on the same day as the sale of an existing property, the degree of difficulty being escalated when you add into the mix moving and having somewhere to sleep that night.

In traditional conveyancing the settlement takes place at a meeting between the Vendor and the Purchaser’s lawyer. Also in attendance will be any banks that have mortgages involved in the transaction – that is usually the purchaser’s bank to receive the payment to discharge the mortgage and the bank that the vendor is obtaining their finance from.

At the settlement the payment of the monies owed for the purchase price is exchanged for the title and the transfer (the titles office document transferring the property to you). Once settlement is concluded you are the owner of the property.

This settlement arrangement is even easier with online conveyancing through the PEXA system. With online conveyancing, once contracts are signed by both parties and any finance is unconditional, a “virtual settlement room” is established where all parties involved exchange the information regarding settlement. A settlement time is then set and at that time some online magic sees the money exchanged, the transfer lodged at the titles office and a new title immediately produced showing you as the new owner. All while we are sitting at our desk!

Whether it is a traditional settlement or online, once settlement has concluded we will let you know. If you are the buyer you can then collect the keys from the agent and move in. If you are the seller, you will have the sale proceeds deposited to your account and the property is no longer yours.

While we are organising the settlement there are a number of things you should do to make the move as smooth as possible. A buyer should make sure they have obtained property insurance and arranged for the services such as power, gas and phone and internet to be connected for the day of settlement. Being well organised prior to settlement will help make the day of settlement less stressful.

If you have questions about your settlement, call the Conveyancing team on 03 5445 1000.