Whether you buy property at auction or make an offer on a listing you’ll be asked to sign a Contract of Sale. This contract will confirm the selling price as well as any terms and conditions. You will need to include appropriate conditions such as subject to finance approval, a building inspection report and a pest inspection.

​The period from signing a Contract of Sale to settlement – when the property becomes legally yours – is usually six weeks (shorter in some states, such as Queensland).

Even if you have a pre-approved loan, your lender will still need to complete a valuation of the property you have chosen before issuing full approval and if that valuation is not satisfactory the lender may not give final approval of a loan to purchase that property.

You will need a conveyancer or solicitor to act for you to complete the sale. Your conveyancer should also check all rates and taxes have been paid, check land use or building approvals for the property and order any relevant searches. 

​On settlement day, the conveyancer will check the correct amount of money has been transferred from your lender to the seller and all fees – such as Stamp Duty – are paid, so you can take legal ownership of the property.

A deposit is required once a Contract of Sale has been signed by both parties. You won’t yet have access to your home loan, so your deposit will need to come from savings or elsewhere. You may also be able to arrange a deposit bond until settlement.

If you didn’t buy your property at auction, you may have a cooling off period when you can cancel the contract, although there may be a small penalty. Cooling off periods don’t necessarily apply in every state so check with your conveyancer to find out what your rights may be.

Subject to valuation and any outstanding credit conditions the lender will provide unconditional finance approval for the purchase. It's at this time, subject to satisfying any finance clause within your contract of sale, that your contract will progress too unconditional. It's always recommended that you seek guidance from your conveyancer when dealing with matters involving your contract. 

It's during this time that you prepare yourself for the settlement. This involves signing your mortgage documents and other required forms, obtaining the correct insurance, and preparing your deposit which is often transferred to your conveyancer's trust account. Being well prepared ahead of settlement will save a lot of tears, trust me.

On settlement day your conveyancer will coordinate the transaction and ensure all parties in the transaction are correctly paid.  Settlements often occur in the afternoon. You will be notified by your conveyancer once settlement has been affected, then you are the proud owner of the new home. 

Remember that settlement is not guaranteed. There are a host of issues that can occur on the day which can delay settlement. It's important to have a contingency plan in place if you are planning to move into the property on the day of settlement.