Part 4: 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 our latest blog, we explore the exciting part of Settlement and some of the key parts and tools to consider.

Settlement Day

Settlement will generally occur between 30 and 90 days from the date you sign the Contract. This is the day you become the registered owner of the property and are free to move in.

Generally the buyer’s and seller’s solicitors will attend settlement, plus the bank for each party (if applicable). As we use PEXA, often your settlement with us will occur online.

The buyer must ensure the remainder of the purchase price is paid to the seller at settlement (whether by the buyer’s bank or from personal funds), and the seller must give the buyer the title documents.

If settlement does not occur on the settlement date due to a breach of contract by the buyer, the buyer is liable to pay penalty interest on whatever the remaining amount due to the seller – which can be up to 16% per annum, accruing daily.

Land Transfer Duty

It is the responsibility of the buyer to pay land transfer duty (previously known as stamp duty) when buying a property. Duty is calculated based on the greater of the market value of the property or the purchase price, and concessional rates of duty exist where the property will be your principal place of residence.

Transfer of Land

Once settlement has occurred, the transfer of land document must be lodged with the Land Registration Services office. If your settlement occurred through PEXA, this happens automatically.

Next week we will explore the Part 5: Post Settlement period and highlight some next steps to consider.

Where to next?

If you have any questions relating to a property transaction then feel free to contact our Property Law team on (03) 9645 9500 or info@mertonlawyers.com.au.