When buying properties in Australia, there is a professional term called "Settlement." many overseas buyers may have some doubts about "Settlement" when they first buy Australian properties. To help you better buy and invest in Australia.
What is "Settlement"?
Put simply, Settlement is the official transfer, the buyer becomes the real owner of the real estate on the same day.
In the legal sense: Settlement is where the bank, together with the buyer and seller's legal representative, (Solicitor), will finalize the legal, financial and loan aspects of the property you purchase, and will formally transfer the property from the seller to your name. Both parties settle all payments.
The exact date of Settlement will generally appear on the contract you signed.
Before Settlement, you need to complete: have a transfer agent, usually your real estate lawyer; prepare the buyer and seller both have signed the contract and indicate the specific date of the Settlement contract; Prepare sufficient cash or loans to cover all expenses required for transfer, including stamp duty, legal fees, insurance premiums, registration fees and other related expenses; A final inspection of the structure of the (final inspection), house has been completed, and the electrical appliances and facilities are in line with the description in the contract;
What is the final property inspection (Final Inspection)?
Prior to Settlement, you or a designated agent will eventually check your property carefully to ensure that the electrical appliances and facilities in the house work properly and are consistent with the contract description. If you are still worried, you can hire a professional to help you check the property, but for a fee.
About the day of the Settlement
On the day of transfer, at the agreed time and place, Your transfer agent (real estate attorney) will sign the documents with the bank agent and the seller's agent and submit it to (Title Office), the government property management department, to register you as the owner of the property.
Neither you nor the seller is involved in this process.
Real estate transfer Q & A
Q: how do you know the house is going to be transferred?
A: about three months before the transfer, the home and home buyers will contact prospective owners to inform them of the current progress of the house, estimate the transfer time, and remind buyers in need of loans to start applying for loans. 14 days before the transfer, prospective owners will receive a "transfer notice" from a buyer's lawyer, accompanied by a final payment list (pictured);
Q: what is the "buyer's adjustment fee"?
A: before the transfer of the house, the seller sometimes paid in advance the expenses related to the real estate, such as city fee, property fee, etc. When transferring, these expenses are deducted from the seller's adjustment fee. After the transfer is completed, the lawyer will return the remaining money to the buyer.
Case: the house was transferred on June 7, 2017, and the municipal management fee (January 1, 2017-June 30, 2017) was paid by the seller. When transferring, the buyer needs to return the municipal fees for the period from June 7, 2017 to June 30, 2017.
Q: how to pay the final payment of the transfer account?
A: there are two cases of late payment: applying for a loan: a prospective owner with a loan transfers "still to provide funds" after deducting the loan to the loan bank account without a loan; the transfer balance is transferred to the buyer's lawyer's trust account to be transferred to the account of the buyer's lawyer for transfer.
Q: is it possible to transfer the account on the same day after the funds are in place?
A: no, it's not. Buyer's lawyer told the prospective owner to determine the transfer date, lawyer confirmed that the funds are in place, according to the buyer's request, scheduled transfer day, 2 to 3 days.
Q: do buyers need to be present during transfer?
A: no need. Transfer only needs to sell and buy both lawyers to complete, after the transfer, the prospective owner to the designated location to obtain the key and related information.
Q: how can I prove that the house is mine without a "real estate certificate"?
A: one of the following can prove it:? Sell and buy contracts;? Transfer confirmation letter;? Certificate of Title;? Municipal management bill
Q: what else do I need to do after the transfer of the house?
A: depending on whether your property is self-occupied or invested: self-housing: you can check in as soon as you get the key. Rental: before the transfer of the house, find a suitable leasing agent and sign the Form 6 agreement. The lease agent begins to seek the tenant; after the transfer, the agent arranges the tenant to stay.
