Navigating the WA Property Settlement Process
The WA property settlement process involves many steps that include a large amount of administrative and legal preparation.
You might be thinking that it is difficult to keep track of each of these steps. That is why we’ve put together this simplified overview of the key steps involved so that you can walk into the property settlement with eyes wide open.
What is a property settlement?
When we refer to property settlement, we are talking about the legal process of transferring a property’s ownership from a seller to a buyer as part of the fulfilment of the conditions of the standard contract for the sale of the property.
This contract of sale must be signed by both parties before the settlement can proceed. The buyer and seller will agree upon a settlement date in the contract of sale.
How long does property settlement take?
Property settlement periods are generally between 30 to 90 days in Australia; however, this can be longer or shorter.
In Western Australia, ensuring that settlement happens within the nominated timeframe is imperative. Otherwise, penalties can occur.
For example, when a party is not ready to settle on the due date, or within the grace period, the other party can choose to charge penalty interest for the delay in settlement. In WA, most contracts charge a daily penalty interest rate of 9% per annum.
Where does the property settlement process start?
The property settlement process kicks off when both a buyer and seller enter a legally binding contract of sale. This can sometimes be referred to as an offer and acceptance (O&A for short).
The contract of sale outlines the terms and conditions of the property sale, such as the price of the property, the deposit amount, the date settlement will take place, and any special conditions within the offer.
Both buyer and seller should engage in the professional services of a property settlement agency or conveyancer before they plan on signing the contract to go over all financial and legal considerations.
What happens during the initial settlement period?
After signing the contract of sale, the buyer and seller enter what is known as the initial settlement period.
The settlement agent or conveyancer will carry out various searches related to the property, including the title search, checking local authority rates and whether there are any outstanding orders on the property. This will determine whether there is anything that may affect the property title.
As settlement day gets nearer, the appointed settlement agents will liaise with each other to prepare the transfer documentation and the financial adjustments required to complete settlement.
What happens on settlement day?
The settlement day of your property generally takes place online and will be arranged by the conveyancers involved. The buyer and seller do not need to attend.
Once the transfer of ownership is lodged with Landgate (the land titles office in WA) and the transfer of funds (such as mortgage repayments and outstanding debts) has been completed, your settlement agent will notify you.
Usually everything will go according to plan. However, if information or documentation is incomplete on the day, then property settlement can be delayed.
Once the property is settled, the buyer will be able to pick up the keys to their new property. If the property is the seller’s primary residence, they have until 12pm the day following settlement to vacate and hand the keys over to the buyer.
In Conclusion
We hope this article has helped you to grasp the WA property settlement process from start to finish. We understand that this process can be daunting and we feel that one of the best things you can do is arm yourself with as much knowledge about the process as possible.
Remember that this blog provides a basic overview of the WA property process, but it is for general guidance only and does not constitute legal advice. For more detailed information or specific guidance through the WA property settlement process,
Contact Us Today
When you are ready to find a settlement agent for your property, it will be crucial to choose someone who understands the current landscape of the Perth real estate market.
If you would like to have a chat to understand our residential settlements processes better, why not contact our friendly team at KDD Conveyancing today?
If you’re looking to learn more about property settlement or conveyancing, or you would like to learn more about the WA property industry, then don’t forget to check out our blog for more insights.
