Understanding the Settlement Process

Understanding the Settlement Process

Are you a newcomer looking to settle down in Australia? Then there are a host of services to help you out and take care of all your settlement needs. While these services often do not cost you a penny, they are quite reliable in maintaining the confidentiality requirements. All of these services are available to you only if you meet certain eligibility criteria, such as you might need to have a specific immigration status or live in a certain area.

Settlement process – how does it benefit you?

Reliable property settlement services will help filling out forms and applications with their correct interpretation and translation. It integrates with itself the ability to help in job search and other relevant information on schools, health care or community services. Services also include assistance towards immigrants to better integrate them into the existing communities.3

Selecting a Settlement agent

A settlement agent is the person to go to for all your property settlement needs. While often the real estate agent helps you with a choice, you are free to select your own settlement agent. You can nominate your preferred settlement agent on the Offer and Acceptance document or fill it up as “to be advised” and keep your real estate agent aware of this.

In this process, do not take anything at face value and assumptions. It is important to realize that the real estate agent of the selling party acts in the best interest of the seller, so it is important to safeguard your best interests during the settlement process.

Contract Receipt

Thoroughly review the contract and ensure you have an original copy of it from the real estate agent. Evaluate any potential risks that might be involved, such as if there is a gap in timing between the finance approval date and the settlement date. Make it a point to, in case of any potential conflicts of interest, voice it out immediately. It is important to realize that a conveyancer works in the best interest of both the parties – buyers as well as sellers. The real estate agent has his vested interests in the settlement agent as well.

Authority to Act

For the settlement process to begin you need to send your settlement agent the Authority to Act form only after which can the conveyancing work start.

Ensure the title search is carried out accurately

This is an important step in the process and utmost care needs to be provided for identifying the existence of any limitations or caveats, such as mortgages which needs to be eliminated prior to settlement. It is always best to know about such nuances right at the outset before going for a settlement.

Build an Unconditional Document

The conveyancers will prepare additional documentation for you that cover important information in areas, such as transfer of land, identification of title certificate, talks about any limitations, stamp duty application form as well as an authority for proceeding statement. There is also an initial settlement statement that you would have access to detailing the distribution of your funds throughout the settlement process. This document entails information such as the purchase price, deposit amount, stamp duties, agency fees, and government fees in the case of a buyer. For the seller, this document carries information about the sale price, agent commission and so on.