What Outgoings are Adjusted at Settlement?
At settlement, in addition to the balance settlement funds, a buyer will be required to pay its share of certain outgoings in respect of the property. These include the land, water and sewerage rates and body corporate levies (if applicable) as well as land tax in certain circumstances. An adjustment in respect of these outgoings is normally made from the date of settlement to the end of the current period. The buyer’s solicitors will obtain searches of the relevant service providers and upon receipt of the searches, will be able to determine the amounts payable by the buyer. Electricity and gas charges are not adjusted at settlement and the seller and buyer must make their own arrangements for meter readings and disconnection / connection in this regard. A less adjustment will also be made in settlement figures for any release of mortgage fee payable by the seller, the seller’s estimated water usage (if the buyer obtains a special water meter reading) and the cost of any additional bank cheques required by the seller over and above those provided for in the contract.
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