Most people are aware that at the settlement of the sale of a property, the amount owed to any mortgagee of the owner of the property (the “vendor”) is paid out, the vendor is then paid the balance of the sale price, noting the real estate agent holds the deposit, and the title to the property is transferred to the purchaser so that the purchaser becomes registered on title as the new owner. But what happens immediately after the settlement?
The purchaser will be very keen to take possession of the property. The keys will be held by the agent. The purchaser can only collect the keys after the purchaser’s lawyer sends a written “order on the agent” to the vendor’s solicitor who in turn sends it onto the agent.
The order on the agent informs the agent that the settlement has taken place and it authorises the agent to release the deposit, less the agent’s commission, to the vendor. The purchaser should enquire of the agent whether the order has been received and should make an arrangement to collect the keys. The vendor should have made an arrangement in advance for the balance deposit to be paid to the vendor’s bank account by electronic transfer.
As a result of the settlement having taken place and the transfer of title having been registered simultaneously with NSW Land Registry Services, the local Council, Sydney Water or other appropriate water authority and the Valuer General will all be informed of the change in ownership. After all, NSW government authorities wouldn’t want to charge the wrong person!
March 2025