You are coming to the end of a property purchase, and are approaching the settlement of the property.
You may have been told by your conveyance solicitor in Gosford that you will have to have a settlement statement in order to complete the deal, but you are not certain what this means, or what you have to do to obtain it.
Linda Emery and Associates are here to explain this term to you.
Understanding the settlement
The settlement is the term used to describe a transfer of land or property from the current owner to the buyer.
When this occurs, it is known as Settlement day, and often means that the transaction is completed. When you are buying a house, you may have to hand over keys, sign transfer documents, and make a final payment.
You will also have to complete a settlement statement.
The settlement statement
This document outlines exactly what the buyer has to do in order to complete the purchase from the seller. For example, it will include payments up to that date, and any receipts of those payments, and it may also discuss stamp duty, statement of adjustments, and any grants.
The settlement statement is usually included in the adjustments statement, so these important documents are together. You may have to include:
- Total purchase price, minus any payments such as a deposit
- income from the property such as rent
- expenses relating to the property including land tax and rates
Within the settlement statement, the adjuster will provide a description of the expenses or income, noting how often they are received or paid, and making a clear statement that the vendor must have paid or received these for the period up to the settlement day itself.
From that point on, they will belong to the buyer. There will be adjustments made to ensure that both the seller and the buyer will have their fair share of both the income and the expenses.
Finishing the statement
When the settlement has been adjusted to make sure that everything is fair, the conveyance solicitor in Gosford will work with the other legal team to complete both the settlement statement and the statement of adjudication.