What is settlement day?
Settlement day is the contractually agreed date on which the buyer of the property pays the balance of the sale price to the Vendor and ownership changes hands. The settlement date is specified in the Contract of Sale and should be no less than 30 days from signing of the Contract to allow sufficient time for the banks and conveyancers to prepare the required paperwork.
Where does settlement take place?
Following the closure of the Settlements Room at the Land Titles Office in March 2020 due to COVID-19, Land Services SA announced that from 3 August 2020 it was mandatory to settle all property transactions and available dealings electronically. The platform used for settlement is called PEXA. There are still a small number of dealings unavailable on PEXA, such as Land Divisions and these documents may still be lodged in paper at the Land Titles Office.
The settlement process is complex and you should engage the services of a licenced conveyancer to represent you as early as possible.
Benefits of Electronic Conveyancing
There are several benefits to come from the introduction of electronic conveyancing. Settlements can now occur from 9:30am through to 4:30pm each business day, whereas previously settlements were booked for 11:30am and if they were not completed by 2:30pm were usually postponed to the following business day. There are no more Bank Cheques, so as a Vendor you should see settlement proceeds cleared in your nominated account within half an hour from settlement completion. Purchasers have the benefit of document registration occurring quicker.
What does your conveyancer do before settlement?
Review the Contract and Form 1
Prepare legal documentation to effect the transfer of land
Liaise with your financial institution and/or mortgage broker
Calculate adjustment of rates and taxes
Verification of Identity
Ensure outstanding rates are paid
Report to Revenue SA and ATO (if required)
Attend and finalise settlement
What time does settlement occur?
Settlement time can vary, so your conveyancer will confirm the agreed time once all parties have accepted in the PEXA workspace. Keep in mind sometimes the banks do not accept until the day of settlement, but your conveyancer will be able to give you an approximate time.
Important reminders for Vendors and Purchasers
If you are selling and the premises is not tenanted, you must ensure that the property is handed over with vacant possession. This requires that the property be free of chattels such as furniture, rubbish, and personal items. Vendors should also make sure utilities such as gas and electricity have been disconnected. See our Selling Checklist for more helpful tips.
Purchasers will need to arrange building insurance on the property from the date of signing the Contract. If you are moving in, you will need to arrange utility connections prior to settlement if they are required to be available on settlement day. It is recommended to avoid booking removalists and trades for the same day as settlement as delays can occur. If you must book removalists, speak to your conveyancer to determine a suitable time.
Do I need to be present on settlement day?
No, your conveyancer will work with the other parties representative and the banks to finalise settlement on your behalf.
How do I know when settlement is complete?
Your conveyancer will contact you and the real estate agent to confirm once settlement has been completed. We will also notify Council, SA Water, Revenue SA and Strata Manager (if applicable) of the change in ownership.
What happens with keys?
Vendors should leave keys to the property with the real estate agent prior to settlement. Once settlement has been completed the agent will contact the purchaser to arrange a mutually agreeable time to collect keys. If you are planning to move into the property on the same day as settlement, it is a good idea to speak with the real estate agent prior to settlement to discuss when keys will be available.
For further information on the settlement process, please contact our office on 08 7071 1605 or email us at team@sawideconveyancing.com.au
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