Settlement FAQ's

What is Conveyancing?

 

Conveyancing is the transfer of property ownership from one party to another. The exercise is not just a matter of filing out forms. The laws associated with transfer of land are complex and can be full of pitfalls.
It is therefore important that you choose a competent settlement agent like Challenge Settlements to assist you in your property purchase or sale.



What is the Torrens Title System?

 

The Torrens Title System of ownership is one where, in principle, governments guarantee title and boundaries for land. It is important to search the relevant certificate of title because it records all caveats, easements, covenants, mortgages and mortgage discharges. There is also the issue of ensuring all conditions on the contract are met.
It is therefore important that an experienced licensed settlement agent assists you with the conveyancing process so as to fully protect your interests.


Are all settlement agents the same?

 

We have been conducting client satisfaction surveys continuously for many years and our clients tell us that not all settlement agents are the same. Often their experience with other agents includes poor communication, limited follow up, potential problems that are not anticipated and settlements delayed unnecessarily.
Often these problems occur when a conveyancer is expected to handle too many settlements, sometimes without secretarial/typing support. If a conveyancer has too much to do, it limits their ability to keep on top of each file and communicate properly with you, or attending to the myriad of small things that will make a difference.
The quality of service you can expect is often directly measured by the fee you pay for the service. Be wary of accepting the lowest quote, always ask if there is a money back guarantee, is there a 24 hour contact line and how many settlements are their conveyancers expected to do each month.

 

What is the Offer & Acceptance?


The Contract by Offer & Acceptance is the legal document that is used to negotiate the sale of the property.
It also summarises any special conditions that have been agreed upon ie; finance approval, timber pest inspection reports etc. It gives the proposed dates for these conditions to be fulfilled and the date for settlement to be completed.

 

How long does it take to settle?

 

The normal period from sale to final settlement is around 6-8 weeks, but can be shorter or longer to fit in with the vendor's or purchaser's plans.
However, occasionally complications can arise and it may be necessary to amend these dates (with the agreement of the vendors and purchasers) if it becomes apparent that a delay is unavoidable.

 

Why do I have to pay stamp duty prior to settlement?

 

All real estate transactions are governed by the "Offer & Acceptance Contract" together with the Joint Form of General Conditions (as amended from time to time.)
All buyers and sellers are required to receive a copy of the Joint Form of General Conditions at the time the contract is entered into.
To protect the interest of the seller, the Joint Form of General Conditions requires that the buyer is required to provide the seller, or their representative, with a stamped, signed copy of the Transfer of Land document in sufficient time to allow the seller to sign and return the document to their representative prior to the due settlement date. Failure to do this results in the buyer being in breach of their contractual obligations under the Joint Form.
This is because the Transfer of Land is the principle document that changes the ownership of the property from one party to another. Once it is stamped, and signed by all parties, it is ready for lodging at the Department of Land Information to enable the change of ownership to be recorded. Thus, the Joint Form requires the signed, stamped Transfer to be held by the seller, or their representative, pending settlement, to protect the interest of the seller.
To enable sufficient time for the Transfer to be received by the seller's representative, forwarded to the seller for signing, and then be returned to the seller's representative in sufficient time for them to then arrange and attend settlement, it is generally accepted that the stamp duty should be available a minimum of 5 working days, (metropolitan area) or 10 working days, (country areas) prior to the due settlement date, or ideally, by the time the Offer becomes unconditional.

 

What Do I Do About the Rates?

 

If you receive an account during the pre-settlement period, be sure to call your settlement agent before paying it. Otherwise you do not need to do anything as all rates will be adjusted at settlement.
Why are you holding monies for Water/Rates? I have paid every account I received on time.
A reading of your water meter is arranged for settlement date. Once the account is received, the amount due is calculated and paid, and the balance refunded to you.
Rate notices are not received at time of initial settlement statements so monies are held in reserve if any rate payments are due. If you have fully paid your rates for the financial year you will receive a refund.

 

Why is my Bank taking so long to be ready for settlement?

 

Why is the Bank ready and then I am told the bank will not book settlement.
Most common hold ups are due to lack of suitable Certificate of Currency for your Insurance Policy; this should be arranged and paid as soon as you receive your mortgage.
Another common problem is missing signatures, or signatures not properly witnessed.

 

Why don't you know the full amount for payment of settlement?

 

The finance approval letter from your bank shows the total value of your loan, however, all bank charges are deducted from the total loan amount before any money is released for actual settlement. Many banks will not disclose the "funds available for settlement" until the actual settlement booking is made.

 

When do we do our final inspection?

 

Your final inspection is to done 5 days prior to actual settlement. This allows time for any problems to be rectified before settlement is finalized.

 

Why Choose Challenge Settlement Services as your settlement agent?

 

Too many times you hear complaints regarding, communication, lack of follow up, not enough information given to the client; Challenge Settlement Services give their full attention to the client and ensure that with our capable and highly experienced staff, that we keep our clients fully informed from start to finish. Our many letters of thanks to our team as received from happy clients are our testimonials to our diligent focus on our clients needs.