Q. What does a Settlement Agent do?

A. Settlement Agents (or Conveyancers) take much of the work and worry of buying or selling real estate off your shoulders.  Apart from handling the complex and often lengthy of transferring ownership, they also ensure that the interests of all concerned are fully protected, and they will advise you of your responsibilities and rights and deal with any legal issues that may arise from the transaction.

Q. Why is there a difference between the settlement agent prices for buyers and sellers?

A. There are more complex and comprehensive searches performed when you are purchasing a property, hence the fees are higher.

Q. Should the buyer and seller use the same settlement agent?

A. It is quite legal to use the same settlement agent and it can often seem convenient.  However, remember that your agent is there to work for you and be your advocate, not just shuffle the paper.

A settlement agent acting for both buyer and seller must cease to act if a conflict of interest arises (for example if the same advice cannot be given to both parties).  Problems may arise over all sorts of issues such as a delayed settlement or an unfulfilled special condition.  It is generally impossible to predict when this may happen, and significant delays can occur if a settlement agent must cease to act in a transaction.

Ask yourself if you're really comfortable using the same person as the other party or if you would feel better working with your own agent.

Q. Why do I have to pay stamp duty prior to settlement?

A. All real estate transactions are governed by the "Offer & Acceptance Contract" together with the Joint Form of General Conditions (as amended from time to time).

All buyers and sellers are required to receive a copy of the Joint Form of General Conditions at the time the contract is entered into.

To protect the interest of the seller, the Joint Form of General Conditions stipulates that the buyer is required to provide the seller, or their representative, with a stamped, signed copy of the Transfer of Land document in sufficient time to allow the seller to sign and return the document to their representative prior to the due settlement date.  Failure to do this results in the buyer being in breach of their contractual obligations under the Joint Form.

This is because the Transfer of Land is the principle document that changes the ownership of the property from one party to another.  Once it is stamped and signed by all parties, it is ready for lodging at the Department of Land Information to enable the change of ownership to be recorded.
Thus, the Joint Form requires the signed, stamped Transfer to be held by the seller, or their representative, pending settlement, to protect the interest of the seller.

To enable sufficient time for the Transfer to be received by the seller's representative, forwarded to the seller for signing, and then be returned to the seller's representative in sufficient time for them to then arrange and attend settlement, it is generally accepted that the stamp duty should be available a minimum of 5 working days for metro areas, or 10 working days for country areas, prior to the due settlement date or ideally, by the time the Offer becomes unconditional.

Q. What Do I Do About the Rates?

A. If you receive an account during the pre-settlement period, be sure to call your settlement agent before paying it.  Otherwise you do not need to do anything as all rates will be adjusted at settlement.

Q. Why are you holding monies for water/council rates?  I have paid every account I received on time.

A. A reading of your water meter is arranged for settlement date.  Once the account is received, the amount due is calculated and paid, and the balance refunded to you.

Rate notices are not received at time of initial settlement statements so monies are held in reserve if any rate payments are due.  If you have fully paid your rates for the financial year you will receive a refund.

Q. Why is my bank taking so long to be ready to settle?

A. Most common hold ups are due to lack of suitable Certificate of Currency for your Insurance Policy.  This needs to be arranged and paid as soon as you receive your mortgage.

Another common problem is missing signatures, or signatures not properly witnessed.

Q. Why don’t you know the full amount for payment of settlement?

A. The finance approval letter from your bank shows the total value of your loan, however, all bank charges are deducted from the total loan amount before any money is released for actual settlement.  Many banks will not disclose the “funds available for settlement” until the actual settlement booking is made.