Today, we’ll share with everyone a little bit about what happens after settlement, following on from our last three blogs.
Luckily whether you’re the Vendor or the Purchaser, most of these last few tasks are your Conveyancer’s responsibility. Let’s go through what they are and how they happen.
First up, you won’t need to attend settlement. We do that for you. You also won’t need to sign anything.
Besides the keys, just simply wait for our phone call to say that everything’s done.
If you’re the Vendor, you need to make sure you’ve dropped the property keys off to the Agent before settlement. As the Purchaser, all you need to do is pick up the keys.
Payments after settlement..
When representing the Vendor, we ensure the mortgage is paid in full. After settlement day, no more mortgage payments will be deducted. The account balance should reflect zero as of the next business day (Woo Hoo!). We also pay the outstanding rates, agent fees, and our professional fees.
At settlement, the council rates, emergency services levy, and land tax are paid to the end of the financial year. The water and sewer charges are paid up to the end of the current quarter. We prorata these amounts between the Vendor and Purchaser, and credit is provided to the Vendor for the number of days the Purchaser owns the property. This occurs because the Vendor must provide the Purchaser with a ‘clear title’ at settlement, with no debts attached.
You pay stamp duty, the most dreaded fee, on settlement day. Along with the registration fees for transferring the Title into the new owner’s name.
Lodgement of documentation
The Transfer documentation and any other necessary documents (such as the discharge of the existing mortgage on the Title and the new mortgage document for the Purchaser) are all lodged together at the Land Titles Office.
Registration can take between one and two weeks and once completed, we send a Notice to the Purchaser. This is evidence that the Transfer registration is complete.
We send notifications to the government rating authorities (Council, SA Water, and Revenue SA), as well as the new Property Manager (if applicable) and the Body Corporate Manager (also if applicable). These notifications let them know the new owner details and to update their records accordingly.
Occasionally overdue rate notices get sent to the new owner. Commonly, this is due to a crossover between our notification being received and the issue of the next invoice. If this happens, please send us a copy and we can check if it’s an error and get it rectified.
After settlement and registration is complete, we archive the file for the required timeframe of seven years.
There’s a great article here that also covers off what happens before, during, and after settlement.
If you want to ask us something specific, feel free to drop us a line here.