Understanding the property settlement process in Southern Tasmania

Your questions answered

January 2025 | By Fall Real Estate | Tags: Sell, Buy

In this article

  • Find out what the property settlement process is in Southern Tasmania.
  • Our most frequently asked questions on property settlement answered.

What is property settlement?

Understanding the Property Settlement Process in Southern Tasmania

Property settlement is the legal process of transferring ownership of a property from the seller to the buyer. It marks the completion of a real estate transaction, during which all agreed-upon conditions and the payment of the purchase price, are fulfilled.

 

Settlement periods can vary, typically ranging from 30 to 90 days, but can be adjusted depending on the agreement between buyer and seller.

 

What happens on settlement day? Fall Real Estate

 

On settlement day, the buyer’s funds are transferred to the seller, and the property title is officially transferred to the buyer. Solicitors or conveyancers typically manage this process on behalf of both parties to ensure everything is handled correctly, including legal documentation, payments, and adjustments for rates or taxes.

 

Here’s what typically happens on settlement day:

Pre-settlement inspection

A pre-settlement inspection is where the buyer conducts a last walk-through of the property to ensure everything is in the agreed condition.

 

Read our informative article about pre-settlement inspections and why they matter!

Transfer of funds

The buyer’s bank transfers the purchase funds to the seller’s bank. This includes the purchase price minus any deposits already paid.

Transfer of title

The title of the property is transferred from the seller to the buyer, who officially becomes the legal owner.

Payment of fees

Any outstanding fees like stamp duty, legal fees, and lender’s fees are paid.

Notification of settlement

The solicitors or conveyancers of both parties will notify the buyer, seller, and relevant authorities (including your property agent) that settlement has been completed.

Keys handover

Once all the finances and the property title are settled, the buyer receives the keys to the property, officially completing the transaction. One of our agents will hand over the keys to the buyer.

 

It's the successful combination of the settlement period and the settlement day that you take possession of your new home.

Disclaimer: The information on this website is not legal or professional advice and is general in nature; therefore, the editorial content or articles on this website are intended as a guide only and do not consider your personal objectives, financial situation or particular needs. For more information, please read our Terms of Use and Privacy Policy.

Key FAQs on property settlement

Frequently asked questions about property settlement | Fall Real Estate

Closing date, settlement date, and move-in date: What’s the difference?

The closing date, settlement date and move-in date are three key terms used in real estate, but they refer to different stages in the property settlement process.

 

Closing date

The closing date is when all parties involved (buyer, seller, and lender) sign the final documents, finalise the transaction, and transfer property ownership from the seller to the buyer. Essentially, it is the day the documents are signed and the legal exchange takes place, and takes place before the settlement date.

 

Settlement Date

The settlement date is when the actual transfer of money occurs, typically a few days after the closing. This is when the seller receives their money, and the buyer's funds (from a mortgage or direct payments) are distributed.

 

In other words, it's the date when the funds officially clear and the title to the property is formally recorded in the new owner's name. Depending on how long the financial institutions take to process the transaction, there can be a delay between the closing date and the settlement date.

 

In many cases, these dates may be the same or close together, but they technically refer to different parts of the transaction process. Therefore, buyers can not move into their new home until the settlement date.

 

Move-in Date

The move-in date is when the buyer physically takes possession of the property and can start living there. It is most likely on the same day as the settlement date; however, the timing can vary depending on the terms agreed upon in the contract.

The settlement date is determined and negotiated during the sale process based on the preferences and circumstances of both parties. This is also influenced by lending institutions and mandatory legal searches.

 

When a buyer makes an offer on a property, they typically propose a settlement date as part of the offer. The seller reviews the proposed settlement date and either agrees or negotiates a different date based on their circumstances.

 

For more information about who decides the settlement date, click here.

 

Our professional property agents are here to guide you every step of the way and ensure that your settlement date works perfectly for you. Request a complimentary appraisal today and sell with Fall Real Estate, where we’ll support you from start to finish.

Financial transactions on settlement day: Do I get my money?

Yes, the seller will receive their money on the settlement day after disbursements. The transfer of ownership is finalised, and all payments are made on settlement day.

 

The solicitor or conveyancer (also known as a settlement agent) will work with the buyer and their lender to manage the flow of funds and record the transfer of ownership. The buyer will pay the down payment to the lender, and the loan will begin on settlement day.

 

The entire financial process ensures that the property legally and financially changes hands, with both parties fulfilling their obligations. Therefore, on settlement day, the seller receives the net proceeds from the sale after the mortgage is paid, agent commissions are paid, and any selling costs are deducted. However, there can be delays with the banks, and the solicitor or conveyancer will handle this part of the process.

Potential delays and how to handle them

If there are settlement delays, it is up to the solicitors and conveyancers to come to an agreement with both parties regarding how the delay will be handled.

 

Most often, the purchaser may ask for early possession if they have removalists ready to move their household items into their new home. During this time, when needed, our experienced agents can step in as mediators to help facilitate a solution.

Responsibilities regarding mortgage payments during settlement

On settlement day, the buyer and their lender must ensure all funds required for the property purchase are available. Once the funds are transferred, the solicitor or conveyancer will typically settle the seller’s mortgage and any outstanding costs. The remaining net proceeds from the sale are then transferred to the seller.

What are the conveyancer’s responsibilities at settlement?

On settlement day, a solicitor or conveyancer receives and transfers funds, coordinates with the buyer, seller, banks, and other parties involved, prepares and lodges the necessary documents to transfer the legal ownership of the property to the buyer, conducts final checks to confirm there are no last-minute issues, and transfers the remaining funds (net proceeds) to the seller after all costs are settled.

 

The solicitor or conveyancer will also communicate with your property agent to confirm when settlement has occurred and instruct the release of the keys to the new home owner.

How to prepare for settlement day

How to prepare for settlement day | Fall Real Estate

To prepare for settlement day, here are some essential steps for both buyers and sellers.

For buyers

Review the contract

Ensure you understand all the terms and conditions in the sale contract, and ensure you have completed all the necessary tasks in order for settlement day to go smoothly.

Organise your funds

You can either use a mortgage broker who will arrange all the paperwork for you or you will need to submit your paperwork directly to your lender.

 

Confirm your mortgage or financing is in place, that they have all the correct information needed, and that you have enough funds available for the down payment, closing costs, and any other fees.

Conduct a pre-settlement inspection

Schedule a final walkthrough of the property to ensure it’s in the agreed-upon condition.

 

To find out more about pre-settlement inspections, click here.

Sign documents

Ensure you have signed all the necessary legal and loan documents as required by your conveyancer or solicitor. This can be done prior to settlement day and your conveyancer or solicitor will check on the day of settlement that everything is signed correctly.

Prepare to move

If you are moving into your new home on settlement day, prepare all the necessary things for your moving day!

For sellers

Review the contract

Ensure all terms are being met, including any contingencies like repairs or cleaning that were stated in the contract to be completed.

Communicate

Continue to communicate with your solicitor or conveyancer, property agent, and bank. Ensure you also confirm with your lender or bank to be prepared for the settlement day and time.

 

Check that any outstanding mortgage or debts on the property are paid before or during settlement. This could mean making sure you have the funds ready for your solicitor or conveyancer to pay off your mortgage and transfer your funds to a new mortgage on settlement day.

Prepare to move

Ensure the property is vacant by the agreed-upon date and time and the house is in good condition (in the same condition as when the contract was signed).

 

We recommend that sellers vacate the property well before the settlement deadline. Once settlement has occurred, the purchaser has the right to claim any items left behind that were not listed as chattels in the contract.

Be prepared for a pre-settlement inspection

The buyer has the right to a pre-settlement inspection to ensure the property is left in the agreed-upon state. This includes the condition of the property, fixtures and fittings, and any items listed to be left behind by the buyer.

 

If there are any particular items or fixtures you would like to take with you, such as your much-loved, custom-made built-in study desk, state that you will be taking this in your contract. Otherwise, anything bolted in or fixed in place must be left behind.

Clean and tidy

The Sellers should ensure that the property is left in a clean and tidy condition.

Provide keys and documents

Hand over keys, garage remotes, and any necessary documentation (e.g., warranties and manuals) to your real estate agent on or before settlement day.

Review contract

Review your contract carefully and ensure all required tasks have been completed to prepare your property for handover to the buyer.

Vacate with plenty of time

Ensure the property is fully vacated well before the settlement deadline. Once settlement occurs, the purchaser has the right to claim anything left on the property that wasn't specified as a chattel.

For both the buyer and the seller

Work closely with the conveyancer or solicitor. Ensure they are managing the required legal steps and communicating with all parties involved.

What to expect after settlement

What to expect after settlement | Fall Real Estate

Our real estate agents work closely with you during the settlement process. They will guide you through what will happen on settlement day, including key handover.

 

After settlement is finalised, if you have a mortgage with your new property, your payments will begin, and you can move into your new home! From there, you can relax and start enjoying your new lifestyle.

 

If you would like tips on moving to a new home, download and print our moving home checklist. You will be ready in no time!

Have all your questions answered

Fall Real Estate North Hobart Office

 

Fall Real Estate agents have a wealth of local knowledge and proven results across Southern Tasmania. For specific, tailored advice for your circumstances and information on how we can support you in preparing your property for sale, contact one of our real estate agents today!

 

Contact one of our eight offices across Greater Hobart or complete the sales appraisal form or rental property appraisal form to speak with one of our property agents or residential leasing agents and have all your questions answered.

Disclaimer: The information on this website is not legal or professional advice and is general in nature; therefore, the editorial content or articles on this website are intended as a guide only and do not consider your personal objectives, financial situation or particular needs. For more information, please read our Terms of Use and Privacy Policy.

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