The key to a smooth and stress-free transaction is understanding your closing statement, also known as a settlement statement. While navigating the final paperwork can seem overwhelming, breaking it down into components can make the process manageable. By carefully reviewing each element, we can make informed decisions.
Purchase Price & Adjustments:
This section of the statement describes the agreed-upon sale price of the property. A buyer can usually reimburse the percentage of expenses dependent on the closing date. For example, if the seller has already paid water bills or council fees for the current period, they can reimburse them.
Similar adjustments may be made for any body corporate fees or strata levies paid in advance in properties with strata titles. This ensures that each party only pays their fair portion of these costs.
Financing Details:
Financing details outline and break down the financial structuring. This includes the borrowed amount, interest rates applied to the loan and other fees charged by the lender. Some part of the costs also consist of application fees, valuation fees, and sometimes ongoing administrative charges.
Closing Costs Breakdown:
This includes legal expenses, title registration fees, and stamp duty. However, it is a considerable expense determined by the location and value of the property.
Credits & Debits:
This section of the settlement statement summarises all of the buyer’s and seller’s credits and debits. While debits cover the remaining amount, fees, or any reimbursements needed from the seller, credits may include any deposits the buyer has previously made.
Understanding these points clarifies where money is going and helps avoid unwanted expenses. Real estate transactions must follow strict guidelines and reviewing the closing statement with a solicitor is important. This ensures everything aligns with your understanding of the deal.
At Sapphire Real Estate, we are committed to guiding you through the process, ensuring transparency and peace of mind as you finalise your property purchase or sale.
