Settlement
The contract normally has a period of time after the date of the contract for settlement to take place, usually 42 days or it may have a specific date.
Settlement should take place on or before the date or time specified in the contract. When the settlement date has been confirmed between the parties to the contract the purchaser’s conveyancer will calculate the amount payable at settlement taking into account the adjustments for council, water rates and any other adjustments that are to be made.
The seller’s CPC will, when provided with these figures, check them and then advise how the settlement cheques are to be paid. Normally only bank cheques are acceptable at settlement and it is a term of the contract that bank cheques are to be provided at settlement. Normally the following cheques will need to be provided, the totai of which will equal the settlement proceeds;
> Cheque favour of any discharging mortgagee (to pay out any mortgage)
> Cheque favour of council (to pay any outstanding rates)
> Water authority (to pay any outstanding rates)
> Cheque favour of the seller (being the nett proceeds of the sale)
> Cheque favour of the seller’s conveyancer (to pay the seller’s legal fees)
The place of settlement is determined by whoever holds the deeds to the property, normally the discharging mortgagee and may be held at their head office.
Your CPC or their settlement agent will attend the settlement on your behalf, there is no need for you to attend.
The keys to the property should be left at the estate agent’s office by the seller for collection by the purchaser immediately after settlement.