Buying a home is a major milestone, but once your offer is accepted, the journey isn’t over. Settlement, the final step in securing your new property, involves essential legal and financial processes to make your ownership official. Here’s everything you need to know about the process.

Everything before settlement

You’ve done it. You found the place, made the offer, and it’s been accepted – potentially bringing an end to your property hunt . But before you’re relaxing on the lounge in your new home, you’ll need to go through settlement. This is where everything becomes official: the legal, financial, and logistical steps that transfer ownership of the property from the seller to you.

In this guide, we’ll go through the phases you can expect along the way, from the moment your offer’s accepted to the moment you get the keys. And to help you make it as smooth as possible, we’ll also share some ideas to keep the process on track.

What the settlement process looks like

1. Making an offer and signing the contract

Once your offer is accepted, the next step is signing the contract of sale. This is a binding agreement that spells out the price, terms, and the all-important settlement date – the day you get the keys.

Since this document locks in the deal, it’s worth having a solicitor or conveyancer look it over to make sure everything’s in order before you sign. Think of it as double-checking before a big purchase to avoid any hidden surprises.

2. Bringing in a conveyancer or solicitor

Your conveyancer or solicitor is your “go-to” person for navigating the legal side of things. They’ll work with the seller’s conveyancer, check over the contract for any potential risks, and perform the necessary searches to make sure there are no unexpected issues with the property.

A good conveyancer can make the whole process feel a lot easier and give you peace of mind that all the i’s are dotted and t’s crossed.

3. Getting your financing finalised

If you already have conditional approval from your lender, this is when you’ll move to full approval. Your lender may do a valuation of the property to ensure it’s worth what they’re lending you. Once everything is sorted, you’ll get a formal loan offer to sign.

This can be one of the trickier parts, so keep in touch with your lender and be ready to provide any additional documents they ask for, like pay slips or bank statements.

4. Doing building and pest inspections

Building and pest inspections are all about making sure there are no surprises. These checks reveal any hidden issues – like termites or structural problems – that could turn into headaches (or major expenses) down the line.

If something significant comes up, you may be able to negotiate repairs with the seller, ask for a price reduction, or even back out if your contract allows. It’s like giving the property a health check before you commit.

5. Completing the legal checks

This part’s handled by your conveyancer, who’ll go through various checks to make sure everything with the property is above board. These checks might include:

• Title search: Verifying ownership and looking for any restrictions or easements
• Council and land tax searches: Making sure there are no unpaid council rates or taxes
• Zoning check: Confirming the property’s zoning is compatible with how you plan to use it

All of these are about making sure you don’t get any surprise bills or limitations after moving in.

6. Paying the deposit and other fees

The deposit amount and timing are outlined in your contract, and it’s typically held in a trust account until settlement. You’ll also need to budget for other fees, like conveyancing costs, inspections, and stamp duty. Having these costs covered in advance will help you feel more relaxed when they come due.

7. Getting insurance in place

Home insurance is usually required by your lender as soon as the contract is signed or before settlement. This insurance protects both you and the lender, so if something happens to the property before you move in, you’re covered.

8. Doing the pre-settlement inspection

A few days before settlement, you’ll get the chance to do a final walkthrough of the property.

This inspection is all about making sure everything’s as it should be. Any repairs or fixes agreed upon with the seller should be complete, and anything specified in the contract, like fixtures, should still be in place. This is your last chance to check everything’s in order before signing on the dotted line and taking ownership.

9. Settlement day: the big moment

Settlement day is the official handover day. Your conveyancer, the seller’s representative, and your lender will coordinate to complete the sale. The balance of the purchase price is transferred, your name is registered on the title, and all the legal steps are finalised.

When it’s all said and done, you’ll get the keys – and just like that, you’re a homeowner!

10. Post-settlement tasks

After settlement, there are still a few loose ends to tie up. Updating your address, arranging utilities, and setting up your mortgage payments are all on the list. But by this point, you’re just one step away from fully settling into your new home.

How long settlement takes

The settlement period can vary widely based on what the buyer and seller agree to in the contract of sale. Usually, it takes between 30 and 90 days, but in some cases, it can be as quick as two weeks. The timeframe is chosen to give both sides enough time to wrap up financing, inspections, and any legal checks before the big handover.

While waiting might feel like an eternity when you’re eager to move in, a well-planned settlement period helps ensure that everything is in place for a smooth transition to homeownership.

Ideas for making settlement stress-free

The settlement process has a lot of moving parts, but here are some ideas that may help make things easier:

1. Get pre-approved for finance early
   Home loan pre-approval helps you know your budget upfront and gives sellers confidence in your offer. Plus, it keeps you from scrambling to secure financing once you’ve found the property you want
2. Find a good conveyancer or solicitor
   Your conveyancer or solicitor will handle all the legal and paperwork requirements, so take the time to choose someone experienced and reliable. They’re like your guide through the process, helping you stay on track and avoid issues
3. Budget for extra costs
   Don’t forget about additional expenses beyond the property price – stamp duty, inspections, and insurance can add up. Having a cushion for these costs can keep you from feeling blindsided
4. Arrange inspections right away
   Building and pest inspections can give you peace of mind and a chance to address any issues before you’re locked in. Getting these done sooner rather than later keeps things moving smoothly
5. Stay in touch with your lender
   Keep your lender updated with any changes or requests for documents. The last thing you want is a delay in the settlement process because of missing paperwork
6. Know the timeline
   Being aware of key dates in the settlement timeline helps you stay on top of what’s next and avoid unnecessary surprises
7. Get ready for moving day
   Make arrangements for movers, utilities, and any final address changes. The more organised you are ahead of time, the smoother moving day will be

Wrapping it up: a smooth transition to homeownership

The settlement process is the final stretch between you and your new home. With all the steps involved, it can seem a little overwhelming. But with a bit of preparation and potentially some support from a good conveyancer, you can make it as smooth as possible. By understanding each step, you’ll be ready to handle the process with confidence and excitement.

So, take a deep breath, keep things organised, and look forward to that moment when you’re handed the keys.

Until then, happy investing!