The big day is here! The keys are almost in-hand! But, have you prepared everything that you need to prior to settlement? On the day when you finally take ownership of your new home, you don’t want to be finding out about all of the things you haven’t done yet! Not to worry, NU-DEV have your back: here is your settlement day checklist.
Property Settlement Checklist
This is a guide to ensure all of the key aspects of your property purchase are checked and completed prior to settlement day. Some items may not apply to your specific property, but it will give every buyer a great general idea of the tasks you need to complete before the big day, before it’s too late.
1. Confirm Important Settlement Details:
- That your mortgage is ready to go into effect and your lender is ready to pay the balance owed to the seller.
- Other fees and duties are ready to be paid on this date.
- That you have a conveyancer to officially register you as the new owner.
- You are prepared on the day to handle any unexpected deliveries, phone calls or other such matter.
2 . Prepare the Money Required for Settlement
- Confirm your loan. If no loan, arrange for bank cheques. Or, prepare your cleared funds into an account that your lender is authorised to draw from.
- Confirm your lender with your solicitor, so that they can deliver the funds on time.
- The vendor can often determine the method in which the balance is to be paid. Confirm that the vendor is acceptable to your prepared method of payment.
3. Check the Registration Fee
4. Approve the Settlement Statement
- Prior to the settlement day you will receive what is called a settlement statement from your solicitor. This statement will outline the funds that are required by you for the settlement. It will need your approval in order to go ahead.
5. Conduct the Final Inspection
- Inspect the property one final time on the morning of settlement day. Ensure that everything is as you remember. It should be in exactly the same condition as before the exchange of contracts. Taking photographs and dating them is always a great method when inspecting property.
- List any items you consider to be fixtures in the contract and make sure they are still on site during the final inspection.
- Raise any issues that have become aware to you now, proper to settlement.
6. Check Your Solicitor’s Tax Invoice
7. Check the Adjustment for Local Council Rates
- Your settlement sheet will usually display the local council rate adjustments, but you need to double check. These rates are adjusted between the vendor and buyer. On settlement day, the rates owed to the council will be paid in full by the vendor. The buyers share is refunded to the vendor.
8. Adjust Your Water & Sewage Charges
- Water rates usually run quarterly, and will generally be paid upon settlement by the vendor at the end of the current quarter.
- These charges are adjusted on settlement day, and you will only have to pay the charges that occur for the time after you have completed your purchase.
9. Follow Up on Your Title Registration
- Your lender will register the transfer after settlement at the Land Titles Office. For security for the loan, the mortgagee may hold onto the Certificate of Title. Or, your solicitor will arrange your title registration.
10. Adequately Insure Your Property
- The types of property insurance relevant to you may include: contents insurance, landlord’s insurance and/or Home Owners Warranty insurance.
11. Pick Up Your Keys!
- Keys are collected from the real estate agent after settlement. Changing the locks in your property after settlement is highly recommended!
Once you’ve completed this easy checklist you’re ready for your settlement day! Still have questions and confused about property investments, contact us at NU-DEV.