Understanding the land settlement process

The part when you finally own a piece of land

Have you ever wondered what it would be like to own a piece of land, (and we’re not talking about Minecraft here)? Well, to get there you’d need to get through a pretty lengthy land settlement process. But afterwards, you become a landlord (sweet victory)! Basically, it’s a legal process that’s facilitated by a legal representative and the lender (like Keystart or a Bank) in order to ensure the transfer of land from them to you. All you have to do is pay the balance of the sale price! Easy, right?!

How long will I wait for land settlement?

Land can’t just move from one hand to the next that easily. It has to be titled. These titles are legal government documents that outline the lot details and the owner’s name, and if the land is already titled, then the process can be pretty speedy. Just sign them over! But if the land is untitled, then the settlement process can take a little longer, because it requires waiting for a certificate of title, which can affect the settlement date. 

Then there’s the finance to deal with. Your bank needs to approve that you have the required funds to go any further so there’s a bit of waiting involved if the land isn’t titled. 

What happens on settlement day?

Aside from your literally becoming a landlord you mean (sorry, it was too good not to repeat)|?! On the day, your settlement agent and your lender shake hands formally (kinda) and exchange documents that will ensure the land is yours. Then, the lender will register a mortgage against the title of the property and provide funds. The solicitor will double check the balance has been paid to the seller, make sure all those contractual clauses are filled, and then arrange for the transfer of land and mortgage. Think of it like a ceremonial passing of the torch—2021 Olympics style.

How to prep for the land settlement process

• You’ll have to get a solicitor for this one.
• Make sure you sign and date all the contracts. We REALLY want that autograph over everything.
• Make sure your bank has given you formal finance approval. Super important!
• Have that building and content insurance ready to go. Love a good safety net.

Post-land settlement

After the settlement, your lender will do a ‘draw down on your loan’. This means they need to get back the money they gave to the land developer from your loan account. 

Then, it’s all done. You are officially a landowner! You have made a significant mark on this world with your own place in it. Council fees and rates are now a big part of your new vocab. And you’re about to become very friendly with your utility provider!

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