settlement issue

G’day Fullout,

Once settlement occurs, the property is yours. In 99% of cases, any “problems” discovered after settlement are simply bad luck and too late.

Therefore, it is a good idea to do some simple checks perhaps a day or two before settlement – you could go and give the place a final once-over and make sure that it looks like it did when you signed the contracts.

Any “serious” checks, such as your suggested building inspection, are best done during the negotiation phase – you would sign a contract subject to a favourable building/pest/finance/etc results to you, the purchaser.

As far as attending the settlement personally, it’s amusing to attend one or two, but after that it’s a bit of a waste of your time – better let your solicitor/conveyancer do it for you.

Basically, the actual settlement process is like a rugby scrum…. some people – yours, the vendors and the banks people – all huddle together, trying not to let each other know what they are doing, they push and pull and shove documents at each other here and there, and suddenly the “ball” ( ie the final cheque ) pops out. The vendor ( or his solicitor/conveyancer ) then grabs it and runs away as fast as possible, more often than not laughing very loudly and shouting things like “whoopee !” and “whooohoo !” …….

Have a good one,

BDM

Hi Fullout, I’ve done the conveyances on our last three transactions, a sale and two purchases…ie I’m one of those ‘self acting’ after getting pissed off with slack solicitors…it is DEAD easy and CHEAP doing it yourself…IF you have straightforward properties, ie same family for 100 years etc, which ours have been so far.

I was SO excited about attending my first settlement. Hubby and two kids in the car, while I ran into the building. They searched for a park in Brisbane city…they were still doing the block looking when out I came out again…settlement all over…what an anti-climax for me!

IT’s all done by secretaries – your bank will send their junior with a cheque to pay for the property, she will receive the title (if there is a wee slip of paper, some people don’t even have a paper copy these days) (you can ask for a photo copy if you want), and Bob’s your uncle, all over.

Basically, you pay a deposit on ‘buying’ the house.

You then get all your searches done (or your solicitor does).

You work out who has to settle up with whom on the rates and water etc, for example

Purchase price $100,000
Less deposit $10,000 (paid to r e agent)
—$90,000
Plus rates reimbursement owing $200
—$90,200
Less water levy $20
—$90,180.

Settlement figure is $90,180.

The vendor (‘seller’) will tell you (or your solicitor) how he wants the cheque(s) made out
ie maybe $380 to Smith Legal firm (to pay his legal bill) and $89,800 to him, the vendor.

Don’t forget the real estate agent is still holding your $10,000 deposit in his trust account. When both sides advise ‘settlement has taken place’ to their satisfaction, the agent ‘releases’ the deposit money to the vendor, minus his commission.

ie $10,000 owing, minus $3500 commission, you get $6500 out of the deposit held by the real estate agent.

hope this is helpful.

Kooringal.

if i dont attend the settlement, how will the rest the purchase price be paid, and the other stamp duty fees etc?
I am taking a loan of 80%, with 5% deposit already paid. 80% i assume the bank guy will give a cheque to the seller. WHatabout the rest? Do i pay my conveyancer first now? WHatabout the other fees?

(see above for basic process…your conveyancer will work out a settlement schedule more or less as above…he/she will ‘book’ settlement with your bank about a week prior to the ‘big day’ ie tell your bank when and where settlement will take place and how the vendor wants the cheque(s) made out…your conveyancer will attend settlement on your behalf. Your conveyancer will do a last minute ‘title search’ on the way to settlement ($10 and 5 mins work at titles office), to make sure the vendor hasn’t done any dirties on you during the contract period. Your conveyancer will give the bank the ‘clear’ titles search. Your bank will give the vendor’s conveyancer the cheque for the ‘settlement figure’. The vendor’s conveyancer will hand over any keys and title (if it exists in paper form).

Your conveyancer will send you a bill after settlement takes place and you will pay it.