The Paperwork

It’s time to finalise your purchase! The settlement is the process of paying your money to the seller and transferring the title of the property that you are purchasing into your name(s). It sounds daunting but don’t worry, your settlement agent will guide you through this complicated process.

Sign on the dotted line Once you have chosen your house and land you’ll need to sign contracts with both the real estate company selling the land and your builder. You should ask for a copy of the sales contract (as well as any appendices or covenants) and read it thoroughly before signing. And remember, this is a contract so it’s important that you understand what you’re signing. If you have any questions or concerns make sure to raise them as soon as possible.

Settlement and Settlement AgentsWhat is a settlement agent?Settlement agents are companies that process the purchase of a property on your behalf and are experts at this complicated and involved process. Settlement agents deal on your behalf with the Seller, your bank, Landgate (the government agency that deals with land sales), and any other authority involved in the purchase. Your settlement agent will let you know what to do through the various stages of the buying process. As with anything it pays to shop around for a settlement agent that is right for you. The fees they charge will vary and recommendations from family and friends are a good place to start.

You can find out more about settlement agents at http://www.commerce.wa.gov.au/consumerProtection/Content/Licences/Settlement_Industry/Settlement_Industry.html

The ProcessWhen you’ve found your settlement agent they will need you to: » Sign your mortgage documents right away » Sign and return all settlement documents

Top Tips » Make sure you read all

contracts thoroughly before signing and ask any questions or raise any concerns as soon as possible.

» Ensure your lender or mortgage broker is arranging your First Home Owner Grant application for you. You don’t want to miss out!

» Settlement Agents are there to make the process of finalising your purchase so much easier, so don’t be scared to ask questions along the way.

» For the most up to date information about the First Home Owners Grant and Transfer Duty, please visit www.osr.wa.gov.au.

This guide has been put together by LWP Property Group to give general advice about the process of buying land and building a house on it. All advice is only general in nature and it is advised to always seek additional professional advice.

Finalising Your Purchase

» Let them know if you’re going away and ensure you have signed all documents before leaving

» If applicable, make payment of transfer duty to the settlement agency

» Ensure your First Home Owner Grant application has been completed

Settlement delaysAlthough frustrating, delays may occur. Make sure you have signed and returned all documentation to your settlement agent, bank, lender or seller to ensure that no claim for penalty interest can be made against you if you delay the process.

Transfer duty - do you have to pay it?

If you are a first homebuyer you are unlikely to have to pay transfer duty if the land you purchased is under $300,000 (or an established house up to $500,000). Your settlement agent will tell you if this applies to you. If you do end up needing to pay transfer duty then check with your lender to see if they will include transfer duty as part of your mortgage amount.

How to claim the First Home Owners GrantsIt’s important to ensure that your lender or broker is arranging your First Home Owner Grant application. The Office of State Revenue will notify you once it has been approved simply forward the approval letter to your settlement agent.