Buying a new home is not about giving away the cash or handing over home keys. A lot goes into finalising any property deal, regardless of where you live. It’s like a relay race where the baton is transferred from one to another but ends only when the buyer takes the final legal possession of the property. That’s how property lawyers Gold Coast become a part of that relay race to help the customers get hold of their item without any legal implications. But, what is this “settlement”? And why is this important in any of the commercial or property dealings?
What do You Mean by a Property Settlement?
Any confirmation of a property dealing comes when land is transferred to the buyer in every way. When that happens, it marks the settlement day. That means it’s an end to a transaction involving two parties — one being the seller and the other being the buyer.
The word “settlement” does not simply mean handing over the keys between both the parties. It is more than that. Here is the list of necessities that you need to look before the final settlement.
- Check the property to make sure it meets the expectations of the buyer
- The signing of the transfer documents by both the parties.
- Registering the ownership papers with the land titles office.
- Completion of the SRO/Digital duties form.
- Transferring of the final payment to the seller.
- Mortgage settlement of the buyer
Make sure all the steps are checked before the “handing keys” tradition. So, there are no discrepancies in the future regarding that real-estate property.
Does Settlement Require Any Documentation?
Can you trust plain words in today’s world? Specifically, when there is money involved. No one can, and no one should ever do that. Get everything documented before settling your account. So, a settlement statement is more of documentation that lists out the key elements that a buyer needs to do on the settlement day. It might include a range of necessities including stamp duty, the First Home Owner Grant, or the Statement of Adjustments.
In addition to that, it will also include the total price that a buyer needs to pay minus the deposit already paid. The statement must be put together by property lawyers in Gold Coast or a conveyancer during the time of finalising the settlement documents. These settlement statements are usually combined with the Statement of Adjustments as one needs to settle down the income or expenses concerning the property between seller and buyer.
These might include municipal rates, land tax, or any other expenses concerning the property. If by any chance, the date of settlement is delayed, then the whole system needs to be recalculated as per the final date. If the buyer makes that unwanted delay, the seller can claim a penalty or interest from the buyer as well.
How Much Time Does it Take For Settlement?
Ideally, it takes approximately one to four months that is often designated as a “settlement period.” The date of the settlement period starts on the day when the parties sign a contract of sale. However, the length might vary as per the mutual understanding between both parties.
What Does a Statement of Adjustment Cover During a Settlement?
If you are hiring property lawyers Gold Coast, then make sure he/she includes all the expenses and income that needs to be taken care of between the buyers and sellers. A lot of things need to be discussed and need to be included in this Statement, as discussed in the first part of this article. Here is the list of things that need to be adjusted accordingly.
In this, the seller needs to settle all the municipal dues up to the date of settlement day. If it’s a large piece of land, the calculations might be complicated. So, you need to settle the rates, its nature of a subdivision, have an idea of the payments already been made. This will help make the settlement fast without any further issues.
Water And Sewerage Dues
These are adjusted as per the number of days rather than the amount of water that will be consumed until the settlement date. This is because readings of water meters are usually taken after every quarter. So, they calculate only average water usage to make the final water estimation charges.
If the property was rented and tenant requires to pay the final settlement dues. After the settlement date, the new buyer will start receiving the rent directly from the tenant. Make sure your tenant does not owe any rent to the seller. Settle that score as well on the date of settlement.
If there are security bonds paid by the tenant, include that in the adjustment statement as well. And if there is any reason that bonds were not paid or some of it was already used, the seller needs to settle that payment as well.
The rate of the tax depends on the number of properties a seller owns. Talk to your property lawyers Gold Coast about the procedure of calculating this tax.
These are usually monthly, quarterly, or yearly charges that need to be adjusted in the Statement of Adjustments.
Once all the above factors are settled, confirm the method that you will use to settle the funds. Receive confirmation from your lender including loan amount and repayments. All done. Take your keys and settle down in your new home. Just make sure everything is done in the presence of property lawyers Gold Coast.