The Settlement Date is the deadline for all promises made in the contract to be completed.

If all the terms on the Offer and Acceptance contract have been satisfied, Landgate (the Office of Titles) will, upon lodgement of the relevant documents, transfer the title for the property from the Seller to the Buyer.

The Department of Commerce advises the Buyer of a property to be careful when negotiating a settlement date with the Seller.

It is understandable as a Buyer that you may want to move into the property as soon as possible, but it is necessary to leave enough time before the settlement date so that:

• The lender has sufficient time to approve a loan application and attend to all the relevant paperwork;
• Any inspections required under the contract can be completed and the results of any reports can be considered; and
• Relevant enquiries can be made with the local authority and government departments.

If you, your settlement agent or your bank can’t meet the settlement date nominated on the offer and acceptance contract, you might have to pay default interest to the seller.

It is recommended that you discuss the settlement date with your lender and Settlement Agent or Lawyer before signing a contract.

As an approximate guide, a minimum of six weeks is required for settlement, but you should not rush the settlement and you should keep in mind that settlements can sometimes become complicated.

The Department of Commerce recommends that you get advice from your settlement agent or lawyer before negotiating a settlement date.

To read the original of this document and other information relating to buying and selling a home, please visit the Department of Commerce website at www.commerce.wa.gov.au/consumer-protection/buying-and-selling-home

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