Understanding the Settlement Process
Settlement day is the moment every buyer eagerly anticipates when the property finally becomes yours. But what exactly happens on settlement day, and how does the process work in NSW? Let's break down the timeline and what you can expect.
How Long Does Settlement Take?
The actual settlement typically takes about 20-30 minutes to complete. The process is efficient and straightforward, conducted online by the parties' legal representatives. Once the settlement is finalised, the legal representatives exchange formal letters called the "Order on Agent." This document authorises the real estate agent to release the keys to the buyer and the deposit to the seller.
When Can You Expect to Get the Keys?
The sales agent usually holds the keys to the property. Generally, you can plan to collect them approximately 1 to 1.5 hours after settlement has been completed. This buffer time allows for final administrative steps, such as processing the formal letters and notifying all parties involved.
Who Handles the Arrangements?
A common question is whether buyers need to be involved in coordinating the settlement. The good news is that this is usually managed by your legal representative, who will liaise with each other, the real estate agent, and any financial institutions involved. However, it's wise to touch base with the real estate agent beforehand to arrange a convenient time for key collection.
What Happens if Settlement Is Delayed?
Occasionally, settlements can be delayed due to unforeseen circumstances such as banking issues, paperwork errors, or last-minute disputes. If a delay occurs, your legal representative will work to resolve the issue as quickly as possible. While delays are rare, knowing about this possibility and having flexible plans on settlement day is helpful. In some cases, if the delay is on the seller's end, you might be granted early access to the property. If the settlement is delayed due to the purchaser's fault, the vendor does have the right to charge you daily interest for each day you are late. The amount of interest will be set out in the sale contract.
What to Bring When Collecting Your Keys
When it's time to collect your keys, ensure you have some form of identification, such as a driver's license or passport. The real estate agent may require this to verify your identity before handing over the keys. It's also a good idea to bring along any paperwork related to the settlement in case there are any questions or final details to confirm.
What Happens After Settlement?
After settlement is complete and you've collected your keys, there are a few more steps to take care of as a new homeowner. You’ll want to:
- Transfer Utilities: Arrange to have the utilities (electricity, water, gas, etc.) transferred into your name from the settlement date. Normally, you would call your providers ahead of settlement to let them know your proposed settlement date.
- Update Your Address: Make sure to update your address for important services such as your bank, insurance, and the electoral roll.
A Quick Overview of the Settlement Timeline
- Settlement: The legal representatives complete the online settlement, which usually takes 30-30 minutes.
- Immediately After Settlement: The Order on Agent is exchanged, and the real estate agent is authorised to release the keys.
- 1-1.5 Hours After Settlement: You can collect the keys from the sales agent's office.
Conclusion
Property settlement in NSW is straightforward, thanks to the online systems in place. With your legal representative handling the details, you can look forward to a smooth transition and the excitement of picking up your new keys shortly after the settlement is complete—it's time to start arranging your housewarming party.
Need More Information?
Have more questions about the settlement process? Feel free to reach out to us. We're here to guide you through every step of your property journey!
