The property has exchanged either under the hammer at auction or through negotiation in a private treaty sale and the first step is done. So, what comes next?
There are still a few steps before settlement can go through and some key areas to be aware of in the lead-up to the final sale of your home.
Cooling off and legal documents
As part of the exchange, there will usually be a cooling off period that allows purchasers to rescind their offer on the property should all not go according to plan.
The cooling-off period varies from state to state and can be anywhere from three to five days except in the case of an auction in which the cooling-off does not apply.
Solicitors or conveyancers will also be engaged and will manage the legal contracts and required documents for the exchange of contracts and the eventual settlement.
Discharge of mortgage obligations
For a settlement to go through, your solicitor or conveyancer will need details to ensure that the mortgage can be discharged with your financial institution.
In cases where the sale price does not meet the amount to discharge the mortgage, they will advise you to discuss options with your financial institution to ensure the remaining debt can be settled.
Should there be challenges with the mortgage over the home, it may hold up a settlement or the sale could be withdrawn.
Arrangements for your new property
If you haven’t already thought of your next move, now is the time to arrange where you will be moving to.
Will you need to rent for a period of time or have you found another property to purchase. You may need to arrange for bridging finance over your new purchase between the settlement dates of both your sale and purchase and your financial institution can usually discuss options with you.
It is recommended to move to your new home at least a few days prior to settlement so that you can arrange for any cleaning and repairs to be carried out at the property. This will also reduce the likelihood of settlement being held up with any potential issues.
On settlement day, the solicitors or conveyancers for both parties will oversee the exchange of funds with the banks, the discharge of the mortgage and payment to any utility companies, rates and levy balances and required transfer taxes and requirements.
Then, it is handing over the keys to your agent and saying farewell to your property and looking toward your new home.
If you have any questions about the sale and the steps after the exchange, chat with our sales team today.
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