Property settlement can be a daunting part of the buying and selling process. Deposits not being paid on time, problems obtaining finance and disputes about the property’s condition are all issues that can arise during the waiting period, regardless of whether you are buying or selling a property. However, it doesn’t have to be that way. One of the best things you can do to ensure a smooth process is to arm yourself with knowledge, and this includes getting a solid understanding of how the property settlement process works.
Essentially, property settlement is a legal process by which a property’s ownership is transferred from one person to the next during its sale. The property settlement period generally begins after the contract of sale has been signed. This waiting period is in order to give both parties enough time to arrange for the buyer to arrange finances with their bank, and for both parties to complete all the required legal documentation with their property settlement agents. When choosing a settlement agent, it is vital to choose somebody who can provide the full range of property settlement services and who understands the current Perth real estate market.
In Australia, the property settlement period is usually between thirty and ninety days. This all depends on the agreed timeframe nominated by both parties once the contract of sale has been signed. As a rule of thumb, it is best to agree to 28 days or more, as there is a great deal to do during this part of the sales process. In Western Australia, it is important to ensure settlement can be achieved within that nominated timeframe, or penalties may apply for delayed settlement. If the buyer cannot settle on or within three days of the settlement date, they will be liable to pay penalties to the seller. At the same time, of the seller is not ready by settlement date, they must pay compensation to the buyer.
The next and final step of the sale process is for the bank to deduct the amount paid at settlement from the buyer’s account. Land transfer duty and stamp duty will also need to be paid, after which the title of the property will be transferred from the seller’s name to the buyer’s.
Understanding what is involved during property settlement is a key component when buying or selling property. For more information about the property settlement process and what it entails, contact the team at Crescent Conveyancers, one of Perth’s most trusted property