Settlement and electronic conveyancing in Australia

What happens at settlement

The Victorian page describes it this way: you pay the balance of the purchase price, become the registered owner and take possession unless you arranged otherwise. It is usually handled by the legal practitioners or conveyancers and the lenders involved. The transfer is lodged with the land registry, and once settlement is complete you collect the keys from the agent.

NSW Government lists the conveyancer’s steps: examining the contract, checking for arrears or land tax debts, arranging adjustments for council and water rates, overseeing the change of title with the registry, and attending settlement.

Timing

• Victoria: “The seller sets the date of settlement in the contract of sale”, usually 30 to 90 days after the contract.
• Western Australia (auctions): the balance is due at settlement, usually 30 days after the auction.
• Other states set the date in the contract. Ask your conveyancer.

Adjustments

Outgoings such as council rates and other charges are adjusted between you and the seller. In Victoria the seller pays up to and including settlement day and you pay from the day after. Your conveyancer prepares the figures, which are added to or deducted from the balance you pay.

Before settlement day

• Final inspection. In Victoria you are entitled to inspect “at any reasonable time during the week before settlement”. The contract requires the seller to hand over the property in the same condition as when it was sold; if you find damage that was not there on the day of sale, you can ask for a repair. Check that the listed items are present and working. Queensland suggests re-inspecting 2 to 3 days before settlement.
• Valuation and insurance. Your lender usually arranges a valuation. Victoria says the lender recommends building insurance from the date the seller signs the contract.
• Title check. Your conveyancer should compare the plan of the land with the certificate of title and flag any differences.
• Purchase duty. It is a state tax, calculated by state; see the stamp duty calculator. In Victoria it is usually paid at settlement and you cannot receive the title transfer until it is paid; the State Revenue Office says penalty tax and interest may apply if duty is not paid within 30 days of settlement (a Consumer Affairs Victoria page mentions up to three months, so follow the State Revenue Office and ask your conveyancer). In Queensland, for a settlement through the electronic network, you choose in the workspace between paying the Commissioner before settlement or after; the page says the due date is 14 days after you submit the transaction. Check the rule of your state with your conveyancer.

What electronic conveyancing is

ARNECC describes electronic conveyancing as the regulation of “an electronic environment for completing conveyancing transactions” under the Electronic Conveyancing National Law. ARNECC was formed in 2011 under an intergovernmental agreement to coordinate a national approach among the states and territories.

In practice, the transaction is prepared and lodged in an Electronic Lodgment Network run by an Electronic Lodgment Network Operator. ARNECC lists two operators: Property Exchange Australia Ltd and Sympli Australia Pty Ltd. Conveyancers, lawyers and financial institutions must become subscribers to one of them to lodge electronically. You, as a buyer, do not need an account.

Landgate (WA) states that its benefits include showing each party’s settlement preparedness well before the agreed date, eliminating the need to attend settlements in person, and making settlement funds available immediately.

Is it compulsory?

It depends on the state and the document. In Western Australia, mortgages, discharges of mortgage, transfers, caveats and withdrawals of caveat have been mandated since 1 December 2018, and paper lodgement is not accepted for mandated documents. The other states’ pages read do not state whether it is compulsory. Ask your conveyancer how your settlement will be lodged.

If the disclosure documents are missing

South Australia’s Form 1 page notes that the seller must serve the Form 1 at least 10 clear days before settlement. A missing or inaccurate disclosure can give the buyer a right to rescind until settlement (see contract of sale and exchange). If you cannot settle on the date, speak to your conveyancer and lender at once; the contract sets the consequences.

Which professional to consult

A conveyancer or solicitor acts for you at settlement and runs the electronic workspace; see conveyancer. Your lender is also a party. In NSW you can check a conveyancer’s licence at verify.licence.nsw.gov.au; in other states use the official register.