Settlement is the completion of the transaction when purchasing a property.
A date is arranged by both parties and your lender for settlement.
The lending body pays the loan moneys and the purchaser pays the balance.
You must check before settlement (when the settlement statement is being prepared) what the actual amount provided on settlement by your lender will be.
Your lending body will usually deduct its costs and disbursements from the loan amount so you will not get the full amount you are borrowing.
Your solicitor or conveyancer authorises the seller's representative to collect the deposit from the real estate agent. The buyer will pay, in addition to the price, adjustments such as land taxes, council and water rates already paid in advance by the seller for the current rating period.
This payment will be calculated by your solicitor or conveyancer from the date of settlement.
Land tax is payable in total by the seller and may be adjusted if provided for in the contract.
Your solicitor or conveyancer will receive a signed transfer and the title deed, and the lender will arrange for the land titles office to register the transfer and the mortgage on title.
The title documents and mortgage will be held by the lending body until the term of the mortgage is completed. The buyer pays the duty on the mortgage and the contract.
Before settlement please make sure you do a pre- settlement inspection on the property you purchased with the selling agent, to make sure everything is in order.
