Once a property is sold, the next step is paperwork. First is conveyancing. It’s the process of transferring legal ownership of a property from one person to another and is required in every real estate purchase in Australia. It can only be done by licensed conveyancers and solicitors. The conveyancer or solicitor prepares a contract of sale for the property, which includes details of the owners, title, settlement dates, all conditions, what’s included in it, as well as the zoning certificate and sewer diagrams. The exchange of contracts is the formal legal process that creates a binding contract for the sale on agreed terms. The seller and buyer each sign a copy of the sale contract and exchange these documents, making the contract legally binding. Cooling off periods can apply.
So, what happens on settlement day? Settlement is the final stage of the sale, when the buyer completes the payment of the contract price to the vendor and takes legal possession of the property.