Conveyancing Settlement is perhaps one of the most important parts of the whole real estate process, and it’s certainly an important part of the conveyancing process, which is the actual signing over of property from one person to another. Here are the important things you need to know about conveyancing settlement in general.
“Conveyancing Settlement” Overview
If you’re wondering what the term “conveyancing settlement” refers to, exactly, in a word, it’s essentially the part of conveyancing that comes right at the end. After you’ve come to terms with the other side, whether you’re a buyer or a seller, you now have to have the agents from both parties meet together to transfer and handover all the final paperwork.
Once all paperwork is signed, and the outstanding balance of the property sale is paid, including any adjustments, the matter is then “settled”. Until this happens, the sale isn’t officially over yet. Only after that state is achieved do all of the other things that everyone is looking for happen, such as the real estate agent getting the all clear to give keys to the buyer. Once the matter is settled, both buyer and seller should hear about it from their agents.
Who Attends Settlement?
The buyers and sellers don’t actually have to go to this meeting. It will instead be agents such as conveyancers, lawyers and lenders. Basically, representatives of all of the interested parties. This includes an agent from the bank who’s approving the loan to the buyer if applicable, and it can include other parties as well.
Important Terms to Know: “Settlement Crash”
The term “settlement crash” refers to when something goes wrong at the meeting. It’s actually necessary for all interested parties to meet at the same time and in the same location to do all of the paperwork signings. If there’s a delay in this process, then the term used is that the settlement has “crashed.”
It’s actually important that you have a backup plan in case there actually is a settlement crash. It’s not an especially good idea to be absolutely certain ahead of time that a settlement will happen. In other words, just because people say that the matter “should” be settled by a certain time on a certain day, doesn’t mean you should plan to actually move in on that day. This could create serious problems.
You really need that phone call about the matter being settled first before you make hard plans for moving in or doing anything with the property. Obviously, the same goes for a seller. If the matter isn’t settled, and you don’t have the funds yet, then they aren’t yours yet, period. You can’t absolutely count on them until you hear those words.
A crash can happen for a number of different reasons, but a major one is that some fund transfer doesn’t work for whatever reason. They can also happen because of various other human errors like titles not being brought to the meeting properly, or the bank having some other issue like a technical error.
When the Settlement Goes Wrong and “Crashes”
Obviously, everyone wants a settlement to go through on time without a hitch. However, the unfortunate truth is that this doesn’t always happen. In general, if there’s some issue that makes the settlement crash, it will often take at least a couple of days before it can be tried again.
At this point, a few things tend to happen. For one, it’s likely that you may have to pay extra fees due to the delay. Many conveyancers will add this to the total cost of the services they provide. Obviously, this will all vary based on the situation. Another thing that will often happen is that the other party will potentially be in breach of contract if the contract specifies that they must settle by a certain day.
Planning for Just in Case Situations
The settlement date is potentially the most important date in the conveyancing process. Therefore, hiring a professional conveyancer who is experienced in dealing with all of the transfer documents and related parties is essential. Also, attention to detail and a local understanding is key. The Titlexchange Conveyancing Marketplace is a community of conveyancing professionals that have been hand picked by us based on experience, insurance and licensing. Plus all of our conveyancing professionals must maintain a 4 star rating in order to stay on the Titlexchange Marketplace. Leave your details with us and one of our friendly team will be in touch.