Closing the Deal
The closing process, which is known as settlement, is nowadays increasingly computerised and automated. Usually the lawyer for the buyer and the lawyer for the seller get together, exchange documentation and pass over the necessary money.
In most cases the buyers and sellers don't need to attend, as the lawyers attend to the necessary details. In practice, closing the deal brings together the two parties who are part of the transaction process and most of the conditions and terms that were set down, as part of the offer would have at this stage been completed to the satisfaction of both parties.
The lawyers will attend to any final rates, insurance, or other costs, still unpaid on the premises and will pay from the funds before the final passing over of the money. The lawyers will also take out money for payment of estate agent's fees (in fact, the estate agent will have retained the first deposit, so they will take their fees from this and pass over the balance to the lawyers), plus their own fees and any other costs involved in the sale and purchase procedure.
What to Expect
Final settlement is a process where the parties concerned sign the paperwork (if not already signed) to complete the transaction. In general the buyer and the seller are not present at their lawyers who complete the settlement. If there is a need for them to be present to sign final papers, they will be called in by the lawyers and will be part of the completion process.
At that meeting, the sale and purchase agreement is referred to as the contract between the buyer and the seller, and it is from the contract that that lawyers carry out their function. At that meeting also, the title to the property is transferred from the seller to the buyer and the buyer's lawyer passes over the final payment for the purchase of the property.
The buyer will then receive the keys to the property and the transaction is completed.
What you Need to do
One of the easiest parts of the settlement process is that the buyers and sellers need to do absolutely nothing.
Before settlement, the buyer will have a final opportunity to walk through the property to make sure it is in the condition stated in the agreement, and as per previous inspections prior to the offer being made to the seller.
That is, the buyer has to be happy that nothing has materially changed since the sale and purchase agreement was signed.
At the closing itself, all the papers have been prepared by the real estate agent, as well as the lawyers and this may also involve the title companies, the mortgage lender and anyone else involved.
The final paperwork will reflect the sale agreement and allow all parties to the transaction to verify their interest and conclude all matters.
What Comes Next?
Now that you have purchased the property the home is yours and you can move the family in.
Whether you are a first time buyer or repeat buyer, there are a couple of things you may want to look at.
- The papers received at settlement from your lawyer are important, so make sure they are put away into a locked, secure place.
- At closing you need to determine the status of the utilities, so that water, gas, electric and all servicing is switched on. Usually the changeover can be done without the companies turning off the utilities. In fact, they carry on as usual, except there is a cut off date for the old owners and a new date for commencement will be brought up for you as the new owner.
- You will then need to set up your own accounts with these companies so they can send the bills out to the right name and address for payment.
- The final process now is for you to move into the home and make arrangements for it to be cleaned and made spotless, ready for use.