If you're in the process of selling your property, you may be groaning at the prospect of receiving your broker's invoice and wondering just what you're getting for your cash.
Read on to find out just what's entailed in the settlement process and what will happen on settlement day.
Loan pay-out figure confirmation
The first call your broker will make on the morning of settlement day is to your mortgage lender asking for confirmation of your loan pay-out figure. This is needed so that cheque directions can be sent to the buyer's agent, ensuring that the correct monies are paid to the correct recipients as per your instructions.
Once the cheque directions have been confirmed, your broker will carry out a final search to make sure that there has been no activity on the title that they are unaware of. In the event of a caveat being lodged against the title, our broker will need to investigate further before they can proceed to settlement.
When the search comes back clear, the broker will then carry out a final audit of your file. This audit ensures that there have been no procedural oversights that could delay final settlement.
Settlement packet preparation
Once the audit has been completed, the settlement packet can be prepared.
Included in the packet will be:
- Settlement instructions detailing the time and place of the settlement and who is to attend.
- Copies of the searches.
- Documents such as the Seller's Verification of Identity (VOI) declaration and Transfer of Land.
The final settlement usually happens at the buyer's financier's local offices. When all the relevant parties are present, the buyer's agent passes over the correct amounts of monies, as per the directions that were sent out to them earlier that day.
When the broker is satisfied that the right amount of money has been received, the transaction is declared 'settled'.
You will receive a phone call from the broker or conveyancer, confirming that settlement is complete. They will also fax your real estate agent to notify them of settlement.
Any settlement funds that are due to you will then be deposited into your nominated bank account.
Your broker's licensee will finally record any disbursements and receipts in your trust ledger from which a full and final settlement statement will be produced for your records.
As you can see, the settlement process is a detailed and complex one. If you require any further information or advice about settlement,contact a business like KDD Conveyancing Services.