Moving out of the property
If you are living in the property you will need to move out prior to the date of settlement in order to provide “vacant possession”. This means that you must have all your furniture and belongings removed from the property before settlement takes place. You should also clean the property and ensure that all garbage/waste has been removed.
Keys with agent
Once you have vacated the property you must leave all keys, garage remotes and access codes with the selling agent. You should also leave any warranties or manuals that you have for the appliances and inclusions. Once the selling agent has been notified that settlement has occurred and an authority provided by your solicitor/conveyancer they will release the keys to the purchaser.
When and where does settlement occur?
Your settlement date is determined by the settlement period listed on the contract of sale and the date of exchange of the contract. It is typical that settlement occurs six weeks after the date of exchange of the contract however, as the vendor, you may have elected a shorter or longer settlement period when the contract was first drafted.
Settlement takes place through an online platform called PEXA at a nominated time by you and suitable to your bank. Your solicitor/conveyancer will confirm the settlement time with you a few weeks in before settlement so that you can arrange your move. Settlement usually takes 20 to 30 minutes to complete and you will be notified when it has been finalised.
Fees payable by you on settlement
A settlement statement will be provided to you prior to settlement showing the fees payable by you on settlement. Those fees are as follows:
Mortgage Payout Figure
For the bank to discharge your mortgage you will need to pay the outstanding amount of the loan. This is called the payout figure. The final payout figure will be provided the day before or the morning of settlement and will include the latest payment and interest to the day of settlement. Your solicitor/conveyancer will confirm the final amount payable with you before proceeding with settlement.
Discharge of Mortgage Fee
If you have a mortgage you will need to pay the fee for the Registration of the Discharge of Mortgagee at NSW Land Registry Services.
Your lender/lenders solicitor may also impose a fee for completing the lodgement of the Discharge of Mortgage.
The balance of legal fees owing will be paid on settlement and your solicitor/conveyancer will provide you with a copy of your Tax Invoice prior to settlement for your review.
You will need to pay a PEXA settlement fee to complete the transaction through the electronic workspace.
Any outstanding council rates, water rates, strata levies and land tax (if applicable) will need to be paid up to the end of the relevant rating quarter/year from the settlement funds paid. The purchaser will pay their proportion to you from the date of settlement until the end of the rating quarter/quarter by way of a settlement adjustment.
Water usage will be calculated as an average daily rate. You will credit the purchaser for the number of days between the last meter reading and the settlement date at the daily rate The purchaser will then be responsible for the payment of the water usage after the next meter reading.
After the above fees and payments have been deducted, the residue amount will be transferred to your nominated account.
Deposit Paid by the Purchaser
In addition to the funds received on settlement, you will also receive the deposit paid by the purchaser when contracts were first exchanged. From the deposit amount, the agent will deduct the agreed commission and any outstanding fees including marketing and advertising fees. These fees will be the agreed amount as noted in your Exclusive Agency Agreement plus any disbursements.
On settlement your solicitor/conveyancer will provide the selling agent with an authority to release the balance of the deposit to you.
For more information on Purchasing Property check out our other blogs:
Part 1: Finance and Deposits
Part 2: Stamp Duty
Part 3: Review of the Contract
Part 4: Property Reports
Part 5: Exchange of Contracts
Part 6: Planning your move
Part 7: Final Inspection
You may also be interested in our Selling Property series:
Part 2: Selecting an agent
Part 3: The Contract for Sale
Part 4: Exchange of Contracts
Part 5: Discharge of Mortgage
If you have any questions or need any assistance please do not hesitate to contact us at Southern Waters Legal. We offer a free 15 minute, no obligation chat if you want to go through your circumstances.