Property settlement – Selling a property
物业结算 – 出售物业
The seller sets the date of settlement in the contract of sale. The settlement period is usually 30 to 90 days.
Settlement is the date when the buyer:
This is an official process usually conducted between legal and financial representatives of the buyer and seller.
At settlement, all outgoings such as rates and other charges are adjusted between the seller and the buyer.
The seller is responsible for rates up to and including the day of settlement. The buyer is responsible from the day after settlement.
Even though the seller’s insurance may cover the property up to the date of settlement, the buyer’s lender will recommend they take out building and contents insurance effective from the date the seller signs the contract. This is to safeguard the lender’s interest in the property, as well as the buyer’s.
Buyers are entitled to inspect at any reasonable time during the week before settlement. Buyers can contact the agent to arrange this inspection.
The contract of sale requires the seller to hand over the property in the same condition as when it was sold.
Once settlement is completed, the buyer can collect the keys from the agent and take possession of the property.
The buyer is responsible for paying land transfer duty (formerly known as stamp duty) on the sale.
Duty is calculated as a percentage of the purchase price or the market value of the property, whichever is greater. Duty applies to the GST-inclusive price of a new property.
It is usually paid at settlement but the buyer has up to 30 days after settlement to pay. The buyer cannot receive title to a property until they have paid the duty.
There are generally two duty rates:
For more information, visit the State Revenue Office website.
This document transfers ownership of the land from the seller to the buyer.
If two or more people are buying the property together, the land transfer document sets out how they will hold the property; jointly or as tenants in common.
The transfer of land is usually lodged with the Land Registration Services office by the buyer’s legal practitioner, conveyancer or lender.