In a typical property settlement, what happens on the settlement date?
Correct Answer
C) The balance is paid and the transfer is lodged for registration
At settlement the purchaser pays the balance of the price and the transfer (lodged electronically through PEXA) goes to the land registry, and possession is usually given. Under the Torrens system legal title passes to the purchaser when the transfer is registered, which follows shortly after settlement.
Why This Is the Correct Answer
On settlement day the purchaser pays the balance and the transfer is lodged for registration; possession is usually given at the same time. Legal title passes when the registry registers the transfer.
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In a standard residential property settlement, what typically happens if the purchaser's finance is not approved by the finance approval date specified in the contract?
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