‘How long does settlement take’ isn’t a question you ask after you’ve bought a property, because you’ll have had the terms regarding the length of the settlement negotiated as part of your original contract.
The length of the settlement period will always be one of the first items in the contract your conveyancer or solicitor will discuss with you up front and then negotiate on your behalf if there are any issues. Please note though, that it’s the seller who sets the length of time for settlement.
This proposed length of settlement may not be in line with what you were hoping for, which is why your solicitor or conveyancer is so vital. If you need some wiggle room, then your solicitor or conveyancer is the one who will stick their elbows out and secure it for you.
Commonly though, the answer to ‘how long does settlement take’ is 30-90 days.
This is the general ‘ink drying’ period where all of the legalities around the transfer of the deed and any remaining money can move along in a comfortable manner.
As far as any questions regarding the pros and cons of settlement periods, they vary on a case-by-case basis but may include:
Do note though that with a short settlement, the lender needs enough time to complete their final valuations and tie off financing, so you’ll need at least 14 days to account for this.
The settlement money will usually clear into the seller's account on the same day when using an electronic funds transfer. Occasionally though, weekends and public holidays might interfere with the processing of this transaction. It can also differ from lender to lender so you might want to check on this prior to getting your hopes up, as you may be champing at the bit to get in.
As soon as that money hits the account though, the property is legally yours.
Standing at the agent’s door like an enthusiastic puppy waiting to be walked won’t make much of a difference, as the real estate agent won’t release the keys to you until they have confirmation the settlement money has gone through. As soon as this happens, you can arrange to go and pick them up. Provided, as suggested, you aren’t already waiting eagerly at their door.
Arrangements around occupied properties should make no difference regardless of whether they’re rentals or owner-occupied at the time of sale. The details and logistics of this are usually sorted out by the conveyancer or solicitor and shouldn’t affect the time settlement takes.
If the property is rented and has an overlap between settlement and the tenants vacating, this will be worked out and adjusted in the settlement. This is so the seller receives these rent payments up to and including the day of settlement. Then, from the day following settlement, the buyer will in turn receive all additional payments beyond the settlement date.
The only thing that may cause an issue with rentals is if your desired move-in date comes before the end of the lease term the tenants have signed. Due to the record low availability for rentals, sometimes tenants will be reluctant to move before they absolutely have to. However, you may approach the tenant and offer to buy them out of their lease, which can expedite the process and, in turn, help the tenant out.
Good karma when moving is not to be laughed at, especially if the tenants have been in the place for a long time — it may also gain good favour with them to ensure a clean transition.
