Settlement is the finalisation of the sale or purchase process. There are usually four parties involved - the vendors and purchasers conveyancers and the banks for the vendor and purchaser. On settlement, the purchaser's bank will exchange cheques as per the instructions of the buyer's conveyancer and in return, receive the Certificate of Title and 'discharge of mortgage' (if applicable) from the seller's bank.

If prior to settlement the property in question has been damaged, there is a sufficient amount of time to take care of discrepancies prior to settlement.

Once the settlement date arrives, the keys can be handed over to the purchaser and the deposit is released (from trust) to the seller. At this stage, the buyer's bank registers the change of title and mortgage, and notifies authorities (such as the water company) of the change.

Last updated on September 21, 2011 by Webmaster