Property settlement involves a lot of steps. The process of property transaction can be complicated, especially that it involves legalities. However, with the help of an expert conveyancer or solicitor, the process can be easier to understand even by those who do not have any real estate background.

Property Settlement Defined

Property settlement is the process of transferring a property from one owner to another person or the new owner through sale. The entire process is facilitated by a conveyancer or solicitor for the legal aspects and financial representative, such as a bank manager, for the financial aspects between the buyer and seller.

The Settlement Period

The period of settlement is generally between 4 to 12 weeks after the contract is signed by both parties. The contract of sale indicates the settlement period and other terms and conditions relevant to the sale, and this must be agreed upon by both the seller and the buyer.

The Property Settlement Process

The property settlement process generally involves 10 steps that include the following:

1. The contract is reviewed thoroughly to ensure its accuracy and that all agreements and clauses are satisfied.
2. The paperwork must be completed and ready before the date of settlement. A clearance certificate must also be obtained from the Australian Taxation Office (ATO).
3. A title search must also be conducted. All measurements and boundaries of the property must also be noted.
4. The buyer’s bank may be required to conduct a property valuation to determine the exact market value of the property.
5. All the necessary taxes and rates must also be paid up until the settlement date.
6. The buyer should conduct a pre-settlement inspection on the property. This will ensure that the property’s state and condition is the same as when contracts were initially signed.
7. The land transfer duty fees are also required to be paid.
8. Should there be existing debts related to the property, they must be settled at this point.
9. All the necessary documents must be filed before the applicable land registration authorities.
10. The contract is deemed completed, and the new owner takes possession of the property.

Property settlement and transfer requires time for processing and dedication as it entails attention to details. However, if you understand the process, property settlement becomes manageable even for those who do not have experience and background on the matter.

But then again, if you do not have the time, since the process is time-consuming, it would be best to leave the matter to the experts, such as solicitors and financial institutions who know exactly what to do and how to make the process faster without sacrificing accuracy.

Advantages of Hiring a Solicitor

Even if you understand how property settlement works, it is still to your great advantage if you are going to hire a solicitor or a conveyancer for the process.

For one, a solicitor fully understands and can easily meet the legal requirements involved in selling a house or property. Another reason is that selling a property entails negotiating with government agencies and talking with different finance officers and mortgage financiers. Without the skills and expertise, you might not be able to achieve your expectations, so it is best to leave the matter to the professionals.

As part of their professional services, the solicitor will also provide legal advice on how much you are going to pay for the taxes, rates, stamp duty, and other related services up until the date of sale.

How to Prepare Property Settlement

To ensure a seamless process, make sure that all the necessary legal documents, such as contracts, are already prepared before the date of sale. All the taxes and fees that you are obliged to pay must also be covered prior to the completion of the sale.

The solicitor or real estate agent and finance manager must ensure that all the necessary legal requirements are satisfied on your behalf. Part of your obligation as a seller is to remove all the items, such as furniture, that are not included in the sale and to prepare the property to make it liveable and as ready as possible for its new owner.