When buying your first home, there are a few key rules you should keep in mind. Don’t rush into anything. Do your research. Know the costs. And be prepared. Once you reach the settlement stage, there are a few issues that can arise. We’ve created a first home buyer checklist so you know what to look out for at settlement time.
Understanding settlement
Settlement is the official process conducted between your solicitor and the vendor’s solicitor when ownership passes from the vendor to you, and when you pay the balance of the sale price. As the purchaser, it’s your responsibility to confirm the date, time and venue for settlement.
Check the plans
You’ll need to check that all measurements and boundaries correspond with the Certificate of Title on the plan of the land that your solicitor will send you. If there are any discrepancies, alert your solicitor right away. Provide all documentation that you are asked to submit promptly, as any delays could end up costing you.
Final inspection
You’ll need to do a final inspection of the property on the morning of settlement. Aside from the expected wear and tear, the property should be in the same condition that you saw it in before you exchanged contracts. Make sure you raise any concerns right away so that they can be resolved before settlement.
Arrange insurance
Most lenders will require you to take out building and contents insurance to safeguard their and your interest in the property. This will need to be in effect from the date that the seller signs the contract.
Local council rates
Outgoings like rates and any other charges will be adjusted between you and the vendor. Rates owing to the council are paid by the vendor up to and including the day of settlement. You are responsible from the day after settlement.
Land transfer duty is your responsibility and is usually paid at settlement, although you have up to three months after settlement to pay this. You can’t receive the title to the property you’ve bought, until you’ve paid the duty.
Water, sewer and electricity
Water rates generally run quarterly and the vendor usually pays these until the end of the current quarter. These charges are then adjusted between yourself and the vendor, and you’ll only pay rates and charges from the time the purchase is complete. It’s up to you to arrange for electricity meter readings, as well as the connection of these and any other services you need on the settlement date.
Collect your keys
Once the settlement has been completed, you can collect the keys from the agent and move into your new home.
Let’s talk finance
If you’re in the market for your dream home but you’re not sure of the next steps, get in touch with a Mortgage Express broker to talk about finance.
Disclaimer:
While all care has been taken in the preparation of this publication, no warranty is given as to the accuracy of the information and no responsibility is taken by Finservice Pty Ltd (Mortgage Express) for any errors or omissions. This publication does not constitute personalised financial advice. It may not be relevant to individual circumstances. Nothing in this publication is, or should be taken as, an offer, invitation, or recommendation to buy, sell, or retain any investment in or make any deposit with any person. You should seek professional advice before taking any action in relation to the matters dealt within this publication.
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Finservice Pty Ltd (Mortgage Express) is authorised as a corporate credit representative (Corporate Credit Representative Number 397386) to engage in credit activities on behalf of BLSSA Pty Ltd (Australian Credit Licence number 391237) ACN 123 600 000 | Full member of MFAA | Member of Credit Ombudsman Services Ltd (COSL) | Member of Choice Aggregation Services.
