Buying a property.. what happens in the background?

Hi

I am in the process of buying a property, I have already signed the bank loan paper work and returned it back to the bank. I would like to know what happens next?

Are there some background process happening in the background between the conveyencer, the bank, the broker and the vendor?

What are these things that may happen? I am happy to be kept out of the loop, I just want settlement to happen on time without any penalties. But I am curious what happens in the background?

 

You are the employer of the conveyancer who is the middle man/woman.
You and the bank work together for your benefit. The bank will value the property before you buy to check out whether it's worth it or not.
When you find the property you want the bank and the conveyancer start to liaise in order to T up settlement funds and dates.
Once your offer on the property is accepted, you make the first deposit and from there, let the conveyancer do all the communication and direction.

 

A bit will be going on behind the scenes. Wattle covered it pretty well.

You've done the hard part by returning the loan paperwork.

I imagine your conveyancer will have send you a timeline of key dates e.g.

Payment of full deposit (if it wasn't paid initially)
Expiry of B&P
Expiry of Finance
Loan goes unconditional
Settlement Date

If not ask for one if you want.

Shouldn't be a whole lot for you to do other than action any requests that may come through form your broker (e.g. if lender wants more info/evidence of financials) or solicitor (if they wish to undertake searches etc and need approval).

 

Im still surprised that 'at settlement' all parties actually physically turn up in the one room to hand over paperwork, titles, cheques etc.

Ive never attended one but would like to, just to see what happens.

Blacky

 

ok thanks for all the reply

Deposit paid.
Settlement date is confirmed, waiting for settlement now.. thanks!!!

 

I participated in a settlement, quite a while ago. It was a bit like a game of cards.I'l give you this if you give me that, bank cheques exchanged for title deeds, think Monopoly, and you wont be too far wrong! or feel to nervous

 

I went to drop off my bank docs in person once to expedite settlement. I accidentally walked into the settlement area. It was full of uniform, standing tables laid out in a grid, each one about the size of a small restaurant table. It felt exactly like a library. I've always been curious about what settlement actually looks like so it was great to be able to see this in person.

 

I did work experience at a law firm and attended a settlement. Was a long time ago, didn't own property and wasn't that interested at the time. Wish i paid more attention.

 

I have done my own settlement in Perth, so I have been to one. The answer is, very little. The parties literally turn up at the same time and exchange cheques. They don't even look at them to make sure they are for the right amounts! All the actual work goes on beforehand.

 

Doesn't surprise me. The person "attending settlement" is usually one of the lowest paid in the office.
I figured it was a checklist of what they needed to take with them, and a checklist of what they needed to take out with them. The details of which are mostly meaningless.

Also one person will often attend to about 5 settlements a day - sometimes more. So clearly not very onerus.

Still - would be interesting to see it once.

Blacky

 

Settlements are now done electronically

 

Really? All of them?

 

Only the important ones

 

I just give the contract to the conveyancer to read, sign it, and about 2 days before settlement transfer the money from my bank account into the nominated bank accounts, then pick up the keys from the conveyancer when convenient. Its inconvenient and expensive using bank cheques. I have been using direct deposits since 2008. I am surprised bank cheques are still used.

 

I've never been given the option of an electronic settlement. Paying fees for bank cheques annoys me every time I settle. Even my last refinance that settled earlier this year was not done electronically @Chilliblue. I didn't need a settlement agent for that one, so I couldn't order an electronic settlement. It was just between 2 banks and they still used cheques. It's a bit stupid really.

 

My guess is it's the set-in-their-ways solicitors holding things up a bit? Some, not all.

 

I should probably post this in the tight arse thread... But I wanted a large amount of cash out once.. I called and told the bank ahead of time.. then when I got there the teller said "why don't you just get a bank check", I said I was on a tight budget... Then guess who walked out of their with a free bank cheque =)

 

From memory.. my lawyer sent me a bill pre settlement about all the monies I owed.. I just paid them in a bank transfer before settlement.

 

Is electronic conveyancing something a governing body is steering everyone towards, or is it more like "here's another option use it if you want" and hence will take forever to get there?

 

Looks like the State Governments are on board rolling it out. I guess getting all the systems in place first then winding back the paper based services.

https://www.pexa.com.au/news/article/wa-electronic-property-transactions-expanded/237