What does a conveyancer do on settlement day?

Settlement day is a pivotal moment in any property transaction. It’s when ownership officially passes from the seller to the buyer, wrapping up weeks or even months of planning and paperwork. If you’re buying or selling a home in Melbourne, you’ve likely heard the term “conveyancer” thrown around. But what exactly does a conveyancer do on this big day?

Their role is vital in making sure everything goes off without a hitch, and understanding their responsibilities can ease your mind as the date draws near.

What Is Settlement Day All About?

Settlement is the legal process where a property’s ownership switches hands. It’s the final piece of the puzzle in a property sale, where all the financial and legal boxes get ticked.

In Melbourne, this process usually takes between one and four months, starting when the contract of sale is signed and ending on settlement day, when the buyer officially takes over.

Things have changed a lot in recent years. Back in the day, settlement meant people meeting face to face, swapping documents and cheques like something out of an old movie. Now, thanks to tech like PEXA (Property Exchange Australia), most settlements happen online. It’s faster, slicker, and suits Melbourne’s busy property scene perfectly.

For buyers, settlement day is when you get the keys to your new place. For sellers, it’s when you hand over the property and pocket the cash. It’s a big deal, and with so much riding on it, your conveyancer steps up to make sure it all runs smoothly.

Before Settlement Day: Setting the Stage

Your conveyancer doesn’t just show up on settlement day and wing it. They’ve been busy for weeks getting everything ready. Here’s what they’re up to before the main event.

Sorting Out the Paperwork

Paperwork is the backbone of any property deal, and your conveyancer is the one keeping it all in line. They:

• Check your ID to confirm you’re legally able to buy or sell.

• Get your permission to sign transfer documents for you.

• Go over the contract of sale with a fine tooth comb to make sure it’s fair and clear.

• Prepare the transfer documents that’ll be sent to government offices.

If you’re selling, they’ll also do searches, like a title search through Landata, to make sure there are no surprises tied to the property.

Handling the Money Side

Money matters a lot in property deals, and your conveyancer keeps it all straight. They:

• Put together a settlement statement showing all the costs.

For buyers:

• Purchase price (minus your deposit)

• Stamp duty

• Rates, taxes, and fees

For sellers:

• Sale price

• Agent’s commission

• Rates, taxes

• Loan repayments

• Conveyancer’s own fees

• Work with your bank to make sure the funds are ready.

• If you’re a seller with a mortgage, they’ll get the exact payout figure from your lender to clear the title.

Making Adjustments and Checking Conditions

Ever wondered who figures out how to split council rates or water bills? That’s your conveyancer. They calculate adjustments so you only pay for the time you own the property.

They also double check that any special conditions in the contract, like repairs or items to be removed, are sorted out.

Final Inspection for Buyers

If you’re buying, your conveyancer sets you up for a final property inspection a few days before settlement. They’ll tell you what to look for, like:

• Is the place in the same shape as when you signed the contract?

• Are all the included fixtures and fittings still there and working?

• Has anything been damaged since you last saw it?

• Is it clean enough?

• Did the seller clear out their stuff (unless you agreed otherwise)?

If something’s off, your conveyancer steps in to sort it with the seller’s team before settlement day.

Settlement Day: The Big Moment

When settlement day rolls around, your conveyancer is front and centre, making sure everything falls into place. Here’s how it goes down.

Being There (In Person or Online)

Most settlements in Melbourne now happen electronically via PEXA. Your conveyancer logs in at the set time, joining the seller’s team and the banks. Everyone can see the transfer happen live, and confirmation comes through once it’s done.

In rare cases, if it’s an old school physical settlement, they’ll be there in person swapping documents.

Swapping Documents

The star of the show is the transfer of land document, which legally shifts ownership. Your conveyancer makes sure it’s spot on, signed, and sent off to the right authorities.

For buyers: They check the seller’s documents to confirm you’re getting a clean title.
For sellers: They ensure everything’s signed off before handing it over.

Moving the Money

This is where the rubber meets the road. Your conveyancer oversees:

Buyers:

• Transferring the rest of the purchase price from your account or lender to the seller

Sellers:

• Getting your sale proceeds after clearing the mortgage and other costs

They also handle paying stamp duty to the State Revenue Office, either by cheque or through PEXA.

With electronic settlements, money can move in minutes a far cry from the days of waiting for cheques to clear.

Locking in the Ownership Change

Once the funds are sorted, your conveyancer registers the ownership change with the government. This makes it official: the buyer’s name is now on the title, and their rights are secured.

After Settlement: Tying Up Loose Ends

Settlement might be done, but your conveyancer’s work isn’t over yet. They’ve got a few final tasks to polish things off.

Letting Everyone Know

They’ll:

• Tell you the deal’s done

• Call the real estate agent so the buyer can get the keys

• Update the council, water company, and strata (if it’s an apartment) about the new owner

Sharing the Cash (For Sellers)

If you’re selling, your conveyancer handles the proceeds. They’ll:

• Pay the agent

• Settle any rates or taxes

• Cover other costs

• Send the rest to your account

Keeping Records

You’ll get copies of all the key documents, like:

• Proof of ownership

• Stamp duty payment (if you’re buying)

They might also suggest grabbing a registration confirmation from your bank to seal the deal.

Why You Need a Pro Conveyancer

Settlement’s a tricky beast, full of legal, financial, and admin details that need to be perfect. Here’s why a professional conveyancer is worth their weight in gold.

• Dodging Risks: They’re pros at spotting trouble before it hits.

• Knowing the Ropes: Conveyancing isn’t simple. Your conveyancer’s got it covered.

• Backing You Up: They’re there to fight in your corner if problems arise.

• Stress Relief: Property deals can be nerve wracking. A conveyancer brings peace of mind.

Conveyancer vs Solicitor: What’s the Difference?

In Melbourne, you might wonder if you need a conveyancer or a solicitor. Both can handle settlements, but:

• Conveyancers focus solely on property law, often at a lower cost for simple deals.

• Solicitors have wider legal skills, perfect for complex transactions or disputes.

For most straightforward sales or purchases, a conveyancer’s all you need.

Wrapping It Up

Settlement day is the grand finale of your property journey, and your conveyancer is the star player making it happen. From prepping documents and cash flow weeks in advance to nailing the transfer and tying up loose ends, they’re with you every step of the way.

They don’t just push paper; they spot issues, ensure everything’s legal, and keep your interests safe.

Whether you’re snagging your first Melbourne flat, upsizing your family home, or cashing in on an investment, a conveyancer’s expertise is your ticket to a smooth deal.

Ready to Make Settlement Day a Success?

If you’re gearing up for a property transaction and want it done right, reach out to Pearson Chambers Conveyancing. Our seasoned team will guide you from start to finish, and we’re happy to offer a free Section 32 contract review to kick things off.

Give us a call: 03 9969 2405
Email us: contact@pearsonchambers.com.au