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Settlement is usually 4 to 12 weeks after contracts are signed but can be negotiated between you and the vendor. The settlement date is recorded in the contract.
At settlement, the balance of the purchase price is paid and you become entitled to be registered as the owner of the property. Registration of the formal transfer of ownership can take up to 2 weeks after settlement.
You will need to organise for a conveyancer or solicitor to represent you during this legal process.
What a conveyancer will do
A conveyancer will:
- obtain a client authorisation from you to act on your behalf and verify your identity through a range of identification documents
- check outstanding charges and calculate the rates and taxes you need to pay
- calculate the total amount needed to meet all expenses
- liaise with your lending institution on the mortgage documents that are required to be entered into
- arrange for payment, on your behalf, of stamp duty, registration fees and other transaction fees – using funds obtained from you
- search, prepare and sign documentation on your behalf and represent you throughout settlement
- arrange the Memorandum of Transfer – which transfers the land from the vendor to you – and lodge this document with the Land Titles Office.
Rates and taxes
At settlement, all costs such as rates will be adjusted between the vendor and you. Generally, the vendor is responsible for rates up until and including midnight before the date of settlement. The purchaser is responsible from the date of settlement.
Stamp duty
Stamp duty is a state government tax payable on the transfer of a property. First home buyers building or purchasing a new home may be eligible for stamp duty relief. For more information, visit RevenueSA.
A stamp duty calculator is included on the website to help you estimate the amount you may have to pay.
Land tax
Land tax is an annual state government tax. If you are purchasing a home that will be your principal place of residence, the property may be exempt.
If you are purchasing land on behalf of a trust, you are required to advise RevenueSA within one month of purchase.
For more information visit RevenueSA.
Pre-settlement inspection
The vendor must hand over the property in the same condition as when you signed the contract, allowing for reasonable use and maintenance.
Most contracts make the purchaser liable for repairs and damage that occur after settlement unless due to the vendor’s negligence.
Specific wording in the contract will determine whether you have a right to a pre-settlement inspection of the property.
Taking possession
After settlement, you can arrange to pick up the keys to your new home. If you wish to access the property beforehand you may be able to negotiate this with the vendor through their solicitor or conveyancer.
Title insurance
Consider taking out a title insurance policy to protect you against claims for various disclosed and unknown risks that threaten ownership and use (including structures) of the property until its resale.
Title insurance coverage can be very limited so it’s important to review the policy carefully.
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