What happens at settlement
Settlement is the point at which the sale of a property is legally completed, meaning the buyer pays the remaining purchase price and ownership transfers from the seller to the buyer. In most Australian states, this now happens electronically through platforms such as PEXA, where the buyer's and seller's representatives, along with any lenders involved, connect to complete the transfer and payment simultaneously. The date is set out in the contract of sale, commonly 30, 60 or 90 days after exchange, though this can be negotiated between the parties. On the day, no one physically hands over a cheque; instead, funds are transferred electronically once all parties confirm everything is in order.
The role of your conveyancer or solicitor
Your conveyancer or solicitor manages the legal side of settlement on your behalf, including reviewing the contract, conducting property searches, preparing the settlement statement, and liaising with the seller's representative and your lender. They confirm the final amount payable, coordinate the timing with your lender so funds are ready, and ensure the title transfer is correctly lodged. If you're using a loan, they also work with your lender to make sure the mortgage is registered as part of the same settlement process. Choosing a conveyancer or solicitor early in the buying process, ideally before signing a contract, allows them to review terms and flag any issues in advance.
Adjustments and the settlement statement
Ahead of settlement, your conveyancer prepares a settlement statement, which sets out the final amount you need to pay, incorporating adjustments for costs such as council rates, water rates and, for some properties, strata or owners corporation fees. These adjustments account for the fact that the seller may have already paid rates or charges covering a period that extends beyond the settlement date, so the buyer typically reimburses the seller for the portion of that period they'll own the property. The settlement statement also lists the deposit already paid, the loan amount being contributed, and any other costs, giving a clear final figure for settlement day.
Fund disbursement
On settlement day, funds are disbursed according to the settlement statement, generally including payment to the seller (or their lender, to discharge their existing mortgage), payment of any adjustments, and transfer of remaining funds. If you're using a loan, your lender releases the loan funds as part of this process, combined with your deposit and any other contributions, to make up the full purchase price. Once all parties confirm the transaction has settled, the conveyancer or solicitor typically notifies the real estate agent, which triggers the release of keys. Settlement usually occurs within standard business hours, and timing on the day can sometimes shift slightly depending on when all parties confirm readiness.
Getting the keys and after settlement
Once settlement is confirmed, the real estate agent, or the seller directly for private sales, will typically release the keys, often on the same afternoon as settlement. It's common to arrange a final inspection of the property, sometimes called a pre-settlement inspection, in the days before settlement to confirm the property is in the condition agreed in the contract. After settlement, it's worth arranging for utilities to be connected in your name, updating your address for relevant purposes, and keeping the settlement statement and other paperwork for your records, including for any future tax or insurance needs.
Key points
- Settlement is when ownership legally transfers and remaining funds are paid
- Most settlements now happen electronically through platforms such as PEXA
- A settlement statement sets out adjustments for rates and other costs
- Your lender releases loan funds as part of the settlement process
- Keys are usually released once settlement is confirmed
Frequently asked questions
How long after exchange does settlement happen?
Commonly 30, 60 or 90 days after contract exchange, though the exact period is negotiated and set out in the contract.
What are settlement adjustments?
Adjustments account for costs like council and water rates already paid by the seller, apportioned between buyer and seller based on the settlement date.
Do I need a conveyancer for settlement?
Yes, generally. A conveyancer or solicitor handles the legal and administrative steps required to complete settlement correctly.
When do I get the keys?
Usually on the day of settlement, once your representative confirms the transaction has settled, often via the real estate agent.
What if settlement is delayed?
Delays can happen if documents, funds, or confirmations aren't ready in time, and your conveyancer will usually manage rescheduling with the other party.