Settlement day is the day that marks the official transfer of ownership from the seller to the buyer.
It’s a significant milestone in any property transaction, but the process has evolved considerably in recent years.
Thanks to the modernisation of the property settlement process, especially with the introduction of PEXA (Property Exchange Australia), most people no longer need to physically meet with anyone to complete the transaction.
PEXA is an online platform that facilitates electronic property settlements, removing the need for paper-based processes that used to be the norm. It allows all parties involved in the transaction – the buyer, the seller, their respective legal representatives, and financial institutions – to securely and efficiently exchange documents and funds.
Since 2014, PEXA has facilitated more than 15 million settlements!
On settlement day, the legal representatives (or conveyancers) for both the buyer and the seller ensure that all necessary documents are signed and lodged via the PEXA platform. This includes the transfer of ownership, adjustments to any rates or taxes, and finalising the settlement figures. If there’s a mortgage involved, the lender’s details will also be registered through PEXA.
Source: PEXA Exchange
A few things happen behind the scenes on settlement day.
For the buyer, their lender will release the funds needed to purchase the property. The seller, on the other hand, will receive the funds from the sale. Once everything is confirmed and the money is transferred, the property is officially yours. The titles are updated in the land registry system, which are now all electronic.
With everything handled digitally, the traditional ‘in-person settlement meeting’ where all parties would sign papers has become a thing of the past. This streamlined system saves time, reduces errors, and adds an extra layer of security.
Once everything has been successfully settled, and the transaction is finalised, you’ll be notified that the property is officially yours. Then the selling agent can hand over the keys to your new home or investment property!