Conventional real property transactions generally consist of four stages. These include the contract for sale of the property, financial settlements, exchange of documents and money, and registration of transfer plus relevant papers in the Register of Land Ownership. The buyer needs a legal title and the owner owns the right to sell the real property. There will be no hindrance to the sale or any mortgage given this circumstance.
Guide for Buyers of Real Property
Buyers of real property need ample time for approval of any loan application. Most commercial banks prescribe at least 21 banking days for processing and approval. This starts from the time you submit the mortgage application.
Real property settlement firms review the offer thoroughly once it receives the Offer and Acceptance contract. This assessment will determine if the documents are complete and accomplished properly. It will also keep you away from more Stamp Duty. The agency prepares an Appointment to Act with an initial letter and information module to the buyer. This includes important dates such as finance approval and due for sale.
Settlement agents will make sure that all provisions in the real property contract are met so the contract can be performed unconditionally. The agent forwards the settlement pack once the transaction becomes unqualified. This pack contains (but not limited to) a copy of the Land Title, Transfer of Land and Initial Settlement Statement. Settlement companies usually conduct electronic account verification to authorized rating agencies to notify them of change in ownership.
Property settlement agents may also check the loan status with the bank. Once this is ready, the agent can schedule an appointment for settlement of the real property with the buyer and seller’s agent. The company will also take care of making adjustments on duties and rates to ensure that there are sufficient funds for completion of the purchase.
The new owner takes possession of the real property. You will get a duplicate Certificate of Title as confirmation of this change in ownership four to five week after the official transfer.
Guide for Sellers of Real Property
Sellers must accomplish and sign a discharge form for Mortgage Authority. This should be submitted to the bank or property settlement agent. It normally takes 14 banking days for preparation of the appropriate documentation.
You need to read and comprehend all stipulations of the Offer and Acceptance. Any condition that is not satisfied may result in delays of real property transfer. Inform your settlement officer if the lending facility fails to hold security against your estate. Find and keep the title deed before transfer procedures are made to the buyer. Advise your agent if the deed cannot be located.
Sellers of real property must verify their ownership and legal right to sell. The process of identification compels sellers to submit a complete set of documents proving their identities. Preferred legal supporting papers are the Australian Passport and Driver’s License. Settlement agents perform verification or ask sellers to go to Australia Post outlets that provide passport photographs.