Settlement Day Questions for Queensland House and Land Buyers & Sellers
CONVEYANCING SETTLEMENT DAY FAQs
On settlement day in Queensland, various important steps take place including:
If you are buying a property, one of your responsibilities is to pay the remaining amount of the purchase price to the seller.
Additionally, as a buyer, you will receive the title of the property in your name and collect the keys from the real estate agent or representative. This allows you to officially take possession of the property.
DO I NEED A PRE-SETTLEMENT INSPECTION?
To protect your interests, it is advisable to conduct a pre-settlement inspection if you are purchasing a property. This inspection allows you to identify any necessary repairs or issues that need attention from the seller before taking full possession of your new home or land. It's an opportunity to discuss and resolve these matters with your conveyancing lawyer to ensure a smooth settlement process.
WHAT ARE THE PRE-SETTLEMENT CONVEYANCING SEARCHES?
Before the settlement takes place, several searches are made by your conveyancing representative. These searches include:
a title search,
council rates search,
special water meter reading,
main roads search,
land tax clearance search,
and obtaining the registered plan of land.
These searches provide vital information that may impact the settlement process and help protect the interests of both parties involved.
CONVEYANCING SETTLEMENT ADJUSTMENTS EXPLAINED
Conveyancing settlement adjustments involve balancing expenses and costs between the buyer and the seller. These adjustments are made to account for future liabilities or expenses incurred by either party. They may include adjustments for mortgage release fees, rates, water, land tax, negotiated adjustments related to building and pest issues, GST (in certain cases), rent, or bond (for commercial properties). It's crucial to understand and address these adjustments to ensure a fair and equitable settlement.
Before the settlement, several steps need to be taken, such as working closely with your financier to ensure the correct provision of funds, preparing accurate settlement figures, completing and signing relevant forms and declarations, arranging the time and location of settlement with the financier and the seller's solicitor, and forwarding the settlement monies, stamp duty, and fees as directed by your conveyancer.
WHEN DOES THE PROPERTY SELLER PAY THE COUNCIL RATES IN QLD?
The seller is responsible for paying the council rates up to and including the day of settlement. Starting from the day after settlement, the buyer assumes the responsibility of paying the council rates.
A normal settlement date in Queensland typically occurs around 4 to 6 weeks or 30 to 90 days after the contract is finalized. However, it's important to note that the specific date of settlement can be negotiated between the buyer and the seller prior to signing the contract.
DATE OF POSSESSION OF YOUR NEW HOME OR PROPERTY & TENANCY AGREEMENTS
The collection of keys to your newly purchased property usually takes place on the date of settlement or shortly thereafter, depending on the agreed arrangements among you, the real estate agent, and the seller. In some cases, there may be a tenancy agreement in place that allows existing tenants to remain in the property even after settlement. Understanding the complexities of conveyancing laws is essential, which is why consulting an experienced conveyancing lawyer is highly recommended to review your contract and draft any necessary special legal conditions to safeguard your rights.
WHERE IS SETTLEMENT HELD IN QUEENSLAND?
Since 2023, settlement in Queensland is conducted electronically through the PEXA online workspace. The specific time and date of settlement are agreed upon in writing by all parties involved, and this agreed-upon time is legally binding. The steps of an eConveyancing settlement involve uploading outstanding funds, signing off on all details to ensure accuracy, transferring funds securely between financiers or banks, and submitting the required documents directly to the Land Titles Office. Once the Queensland Revenue Office receives the payment of Transfer Duty, the status of the settlement is changed to "settled" in the PEXA online workspace, indicating the completion of the conveyancing process.
After a successful conveyancing settlement, your conveyancing professional will generate the stamp transfer document and send letters confirming the settlement to the real estate agent and other relevant parties involved. They will also remit the appropriate stamp duty to the Office of State Revenue, ensuring compliance with all legal obligations.
