Part 3: Before Settlement

*Please note this is a general guide only and should not be used in place of obtaining our advice. Any references are relevant as of the date of posting.

In Part 3 we explore the steps to take just before settlement.

Just Before Settlement

Property inspection

Within seven days of the date of settlement, you should inspect the property to ensure that it is in the same condition as when you signed the Contract. The Contract normally requires that the property be handed over by the seller to a buyer in the same condition it was in when the property was sold.

If you perform this inspection and notice the property is in a different condition to what it was when you signed the Contract, please contact us to discuss your options - which may include a requirement for the seller to repair the property or pay you the costs of the repairs. If you don’t perform this inspection and the property has in fact gone into disrepair, it can be difficult for you to recover the repair costs from the seller after settlement.

Adjustments

We prepare a settlement statement the day before settlement, which contains the adjustments to the purchase price based on the results of the searches we have done for you (such as rates, water and taxes).

This statement is important as it ensures that the seller has paid the rates and taxes until the settlement date, and the buyer then takes over paying these rates and taxes.

In Part 4 we outline the Settlement process and all the considerations you need to make as the new registered owner of the property.

Where to next?

Please contact us on (03) 9645 9500 or email our directors Anthony Curtin at anthony.curtin@mertonlawyers.com.au or David Rennex at david.rennex@mertonlawyers.com.au if you have any queries.