Settlement date is the day where the balance of the purchase price is paid and the purchaser receives title to the property.
It is usually four to six weeks from the signing of the contract but the date can be negotiated between the vendor and purchaser and this date is stated in the contract.
From 3 August 2020 all settlement transactions in South Australia are conducted online through an Electronic Network Operator (ELNO). Currently there are two ELNO’s operating in South Australia, PEXA and Sympli. This process is completed online by your conveyancer, the vendor’s conveyancer, and the banks associated with the buyer and seller. Your conveyancer will notify you once settlement is complete.
Adjusting and payment of rates and taxes
The purchaser’s conveyancer will adjust rates and taxes such as council rates and water rates. The vendor is responsible for payment of rates and taxes up to and including the date of settlement.
The purchaser is responsible to pay rates and taxes from the day after settlement. If the vendor has paid the rates and taxes then they will receive a credit for the days that they are no longer the owner of the property.
Providing a Settlement Statement
The purchaser’s conveyancer will provide their client with a settlement statement prior to settlement listing all fees, rate adjustments, incoming moneys and deposits paid so they know exactly how much is payable on the settlement day.
Payment of Stamp Duty
It will be purchaser’s conveyancer’s responsibility to pay stamp duty on their behalf to Revenue SA. This will be done electronically via the Revenue SA website.
Lodgement of documents
After settlement has occurred and if there is a mortgage, the incoming bank will lodge a series of documents at the Lands Titles Office in relation to this conveyance:
- Discharge of mortgage (from the outgoing bank)
- Transfer (document that transfers the property from the vendor to the purchaser)
- Mortgage (for the incoming bank)
The conveyancer acting for the purchaser will phone them to tell them that settlement has taken place and where the keys to their new home can be collected from.
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