Oct 24, 2009 6:49 pm
I have done a search and not found an appropriate topic for this so here goes.
What is the actual settlement process? This is just curiosity on my behalf. I know in general it is the transfer of title for a sum of money, but what are the actual steps taken during a basic, no problems settlement?
Re: Settlement Process.2
Oct 25, 2009 3:17 pm
It is relatively simple.
Once the loan is approved, the contracts of sale have been exchanged and settlement approaches then the solicitor / conveyancer for the vendor and the buyer liaise with each other to arrange settlement.
The vendor's solicitor will tell the purchaser's solicitor what cheques are to be made up. Note that if a house sells for say $100,000 and the buyer has paid a $10,000 deposit then this doesn't mean that the purchaser will hand over a $90,000 cheque to the vendor at settlement. The vendor may have a $50,000 loan to CBA and $2,000 owing to the local council and $500 to their solicitor. So generally several cheques are made up which total to the $90,000 remaining.
At settlement the solicitors meet and exchange cheques for the title of the property. If there is a lender for the buyer and seller then they will attend as well. The seller's lender will hand over the title in return for a cheque to repay the vendors loan. The purchasers lender will take the title and hold onto it until the loan is repaid.
The vendors solicitor will then tell the real estate agent to release the $10,000 deposit to the vendor and to hand over the keys to the buyer.
It is really quite simple, just very hard to explain! Your solicitor will take care of everything.
Sign in or Join to reply to this Topic
smithfamilySimonds PCI/Settlement ExperiencesSimonds PCI/Settlement Experiences
We're approaching our PCI day in the next couple of weeks and was wondering, for anyone out there that has built with Simonds, what sort of time frames you experienced…
kksTender Process - What you wish you had doneTender Process - What you wish you had done
Not so much wished I had done but more "glad I developed an understanding" relative to the role of the saes process of the project builder. Reading Seek confirms the…
icat2000Settlement Agent Conflict of InterestSettlement Agent Conflict of Interest
It's a direct conflict of interest as their is no independent party that is acting independent of these three components. It's a risk that you need to factor in. Not sure…