Page 22 - Smartline eBook - First home buyer

Getting the keys
Understanding settlement
Settlement is the legal term for what happens when the vendor hands over ownership of the property to the buyer.
Once your offer has been accepted and you’ve exchanged contracts with the vendor, you’re in what’s known as the settlement period. This is the time between signing the contract and the day you take possession of the property.
The settlement period usually lasts between 30 and 90 days, but can be longer or shorter depending on the contract. Sometimes settlements can fall through. This may happen because of issues securing a loan, problems with the final inspection, difficulty selling another property, vendor delays or issues with paperwork.
If you still only have conditional approval for your loan, the settlement period is when you finalise your home loan with your lender. You will begin making loan repayments after settlement day.
During the settlement period, your solicitor or conveyancer will be working hard behind the scenes, organising the signing of documents and liaising with your lender. They’ll also deal with the vendor’s solicitor or conveyancer on your behalf to make sure everything is set for settlement day. This includes working with them to apportion the cost of council and water rates between you and the seller.
22
First home buyer guide