Property settlement is the final step in a property transaction — the day when legal ownership officially transfers from the seller to the buyer. Here is exactly what happens at settlement, what you need to do to prepare, and what can go wrong.
What Is Settlement?
Settlement is when the buyer’s conveyancer or solicitor pays the balance of the purchase price to the seller’s conveyancer, and in return receives the certificate of title and keys to the property. In most Australian states, settlement now happens electronically through a platform called PEXA (Property Exchange Australia).
How Long After Exchange Is Settlement?
Settlement typically occurs 30–90 days after exchange of contracts. The exact settlement date is agreed by both parties and stated in the contract of sale. Common settlement periods in Australia are:
- Victoria: 30–60 days (shorter is common in a competitive market)
- NSW: 42 days (6 weeks) is standard
- Queensland: 30–45 days is typical
What Happens in the Lead-Up to Settlement
- Finance confirmation: Your lender confirms your loan is ready to fund and sends settlement instructions to your conveyancer.
- Pre-settlement inspection: You are entitled to inspect the property within 2–5 days before settlement to confirm it is in the same condition as when you exchanged contracts.
- Conveyancer prepares settlement figures: Your conveyancer calculates the exact amount payable including adjustments for council rates, water rates and owners corporation fees.
- Stamp duty payment: Stamp duty (transfer duty) must be paid to the relevant state revenue office before settlement.
- Electronic settlement: On settlement day, your conveyancer and the seller’s conveyancer complete the transaction via PEXA. Funds are transferred electronically and the title is transferred.
What Can Go Wrong at Settlement?
- Finance not ready — lender delays in releasing funds
- Tenant still in the property when settlement is due
- Damage to the property discovered at the pre-settlement inspection
- Seller has not paid outstanding council rates or owners corporation fees
- Title issues discovered at the last minute
What Do I Need to Do on Settlement Day?
For most buyers, settlement day is straightforward — your conveyancer handles everything electronically. You simply need to ensure your loan funds have been released by your lender. Your conveyancer will notify you when settlement is complete and the property is legally yours.
How Collings Property Advisory Can Help
A Collings Property Advisor guides you through the pre-settlement inspection, flags any issues before settlement day, and ensures you are fully prepared for the settlement process — all included in our fixed fee of $4,500 + GST.
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