Settlement day is the day you assume legal ownership of your new home. Settlement is the official process conducted by the legal and financial representatives of both you and the seller. It’s the day that all the mortgage brokers, real estate agents and conveyancers hard work has all been for!
While the length of the Settlement process varies from state to state, it usually takes anywhere between 30 and 90 days. The time it’s likely to take your lender to sign off on your home loan is one of the main determinants of the length of your settlement. Settlement day is the day you assume legal ownership of your home. Taking place on a date agreed upon by both parties, it involves your settlement agent (solicitor or conveyancer) and your lender meeting the seller’s representatives to sign/hand over the final documents of the sale, or to hand over cheques.
Once the documents have been signed by both parties, they’re sent to the titles office to register you as the new owner of the property. On settlement day (usually), you can pick up your keys and move into your new home.
How long is a settlement day?
The actual settlement handover process doesn’t take too long at all – anywhere between 5-30 minutes from when the appointment is for. When your conveyancer or broker contacts you to let you know the date and location of settlement day, it’s worth asking them for a short checklist of things you need to before your representatives sign on the dotted line. Some settlements are now being conducted completely digitally with an application called PEXA – how cool is technology!
What happens after settlement?
After settlement, your lender will draw down your loan, debiting the amount they’ve paid at settlement from your loan account. You should get a call from either your broker or agent to let you know it’s all gone smoothly and that you’re welcome to pick up the keys. Most of the other little things would have already been done and explained prior to the settlement day – So once you’ve got the keys, you can unpack and enjoy your new home!