Settlement is when the remaining purchase money is paid and the property transfer moves towards completion. Getting there takes weeks of preparation around finance, documents, searches and the condition of the property. 

More than 1,500 people have connected with close to 350 property law and conveyancing professionals on Bark for help through different stages of buying and selling. If you need support with the paperwork and deadlines, you can request free quotes from property conveyancers before choosing who to appoint.

This guide takes you from the work before settlement through to the transfer of funds, handover and the problems that can delay it.

How long does conveyancing take before settlement?

The settlement period starts once the parties enter a binding contract, although the exact legal point can differ between transactions and jurisdictions.

The contract sets the settlement date or explains how it will be determined. It also records the price, deposit, inclusions, conditions and each party’s obligations.

A period of 30 to 90 days is common. Consumer Affairs Victoria says Victorian settlements are usually scheduled within this range, although buyers and sellers can negotiate another timeframe.

Work completed during the settlement period

The conveyancers or solicitors use this time to prepare the transfer, complete searches and coordinate with lenders.

A buyer will usually need to:

• Finalise loan approval
• Complete relevant inspections
• Review title and property information
• Arrange insurance where required
• Make sure required funds are available
• Sign loan and transfer documents

A seller will normally need to:

• Sign transfer documents
• Arrange the mortgage discharge
• Respond to property enquiries
• Complete any agreed repairs
• Prepare for vacant possession
• Confirm payment instructions

A shorter settlement leaves everyone less time to solve finance, inspection or documentation problems.

If you’re still arranging finance, a mortgage adviser can help you compare lending options and work through the loan process before settlement.

Longer and off-the-plan settlements

Off-the-plan purchases often work differently.

Instead of settling on a date fixed when the contract is signed, completion can be triggered by construction milestones or title registration.

The developer may then issue a notice requiring settlement within a set period. The contract should explain the milestones, notice requirements and sunset provisions that apply.

Longer settlements can also be negotiated when someone is relocating, waiting for another sale or arranging delayed possession.

What do you need to do before settlement day?

The final week is when any remaining practical issues should be picked up and dealt with.

Leaving a funding problem, missing document or property issue until settlement day gives everyone far less room to fix it.

Buyer preparations

Formal loan approval doesn’t always mean the lender is ready to release the money.

The bank can still need signed mortgage documents, evidence of insurance or the buyer’s remaining contribution.

Ask the lender and conveyancer when cleared funds need to be available and whether anything is still outstanding.

Inspections also need to happen within the timeframe allowed by the contract. Finding a defect shortly before settlement doesn’t automatically give the buyer the right to renegotiate or walk away.

A building inspector can check the condition of the building, while a separate pest controller may be appropriate where you need pest inspection/eradication as well.

Insurance timing differs between jurisdictions, contracts and lenders. Ask your conveyancer when the risk passes and when cover should begin.

Seller preparations

If there’s a mortgage on the property, the seller needs to give the lender enough time to prepare the discharge and final payout figure.

A late discharge request can delay settlement even when the buyer is completely ready.

The seller also needs to complete any agreed work, sign the required documents and prepare the property for handover.

Unless another arrangement applies, belongings should be removed and the keys made ready for release.

Final inspection

The final inspection gives the buyer a chance to check that the property is still in the agreed condition.

In Victoria, buyers can inspect at a reasonable time during the week before settlement. Consumer Affairs Victoria also confirms that the property should be handed over in the condition in which it was sold.

Check that:

• Included fixtures and fittings remain
• Agreed repairs are complete
• No significant new damage has appeared
• The seller’s belongings have been removed
• Vacant possession will be available where required
• Included appliances remain in the agreed condition

Raise any concern with your conveyancer straight away.

What can be done next will depend on the contract and the nature of the problem.

What happens on settlement day?

Settlement day brings together the money, legal documents and registration process.

A standard transaction usually follows this sequence:

1. The representatives confirm that the figures and documents are ready.
2. The buyer provides any contribution not covered by the loan.
3. The buyer’s lender makes the approved funds available.
4. The seller’s lender receives the mortgage payout.
5. The remaining funds are distributed.
6. The transfer and mortgage documents are lodged.

Rates, water charges and other property outgoings are also adjusted between the parties under the contract.

Buyers and sellers don’t normally attend the settlement itself. Their conveyancers or solicitors act for them while the lenders and land registry complete their parts.

It’s still important to remain contactable. A late question about documents or payment details can require an urgent answer.

How does the PEXA settlement process work?

Many Australian property settlements are completed electronically through an Electronic Lodgment Network.

PEXA is one Electronic Lodgment Network Operator used by lawyers, conveyancers and financial institutions to prepare documents, transfer money and lodge eligible dealings online.

Before settlement, the representatives work in an electronic workspace. They verify identity and authority, prepare the instruments, enter payment details and calculate the final adjustments.

They also coordinate with the lenders. Once everyone is ready, the financial settlement can be completed and the documents moved to lodgement.

PEXA isn’t the name of Australia’s entire electronic conveyancing framework. The exact process still depends on the jurisdiction and transaction.

Different state and territory systems

Electronic conveyancing rules aren’t identical across Australia.

NSW moved to electronic lodgement for all land dealings on 11 October 2021, with an exception process for transactions outside the electronic scope.

The NSW Registrar General explains how lawyers, licensed conveyancers and banks lodge dealings through an Electronic Lodgment Network.

Queensland requires specified instruments to be lodged electronically unless an exemption applies. Titles Queensland publishes the relevant requirements.

Victoria also uses electronic conveyancing for eligible dealings. Land Use Victoria explains its electronic lodgement framework.

Your conveyancer can confirm which process applies to your transaction.

What costs need to be paid around settlement?

Settlement involves more than transferring the purchase price.

Conveyancing typically costs around $800 to $2,500 for an Australian property transaction. A straightforward residential purchase or sale commonly sits around $1,000 to $1,500, with a midpoint of about $1,250.

GST treatment can differ between professional fees and other charges. Check whether GST is already included in the quoted conveyancing figure before comparing providers.

Common buyer costs around settlement

Title searches can cost around $20 to $100, while council or land-tax searches can sit around $100 to $300. Other certificates can add further costs depending on the property.

Transfer duty is different because there isn’t one useful national figure. It depends heavily on the state or territory, purchase price and whether the buyer qualifies for a concession or exemption.

The buyer’s final contribution can also change after rates, water and other property outgoings are adjusted between the parties.

Seller costs

A seller can have conveyancing fees, mortgage discharge costs, agent commission, marketing expenses and outstanding property charges.

Some of the proceeds may be paid directly to the outgoing lender, agent or another authorised recipient. The remaining balance is then transferred to the seller.

Capital gains tax can also arise depending on the property and the seller’s circumstances. Ordinary conveyancing advice doesn’t automatically include tax advice.

Comparing conveyancing quotes

A low advertised price can leave out searches, electronic settlement charges or additional contract work.

Ask each provider to separate:

• Professional fees and GST
• Searches and certificates
• Registration charges
• Electronic settlement fees
• Other disbursements
• Extra charges for urgent or complex work

That gives you a much clearer comparison than looking at the professional fee alone.

When you know what help you need, you can get free quotes from property conveyancers and compare what each one includes before appointing anyone.

What can go wrong on settlement day?

Most transactions complete on the scheduled date, but one unresolved issue can stop everyone from becoming ready.

Finance delays

The buyer’s lender might still be waiting for a document, valuation, insurance information or part of the buyer’s contribution.

If the buyer can’t settle, the seller may have rights under the contract. These can include default interest or other costs.

Contact the lender and conveyancer as soon as a delay starts to look possible.

Mortgage discharge problems

The seller’s bank needs time to prepare the mortgage discharge and confirm the payout amount.

A late or incomplete discharge request can hold up settlement even when the buyer’s money is ready.

Incorrect documents or figures

Names, signing details and title information need to match the relevant records.

A discrepancy can need correcting before lodgement. Payment details, payout figures and property adjustments also need to balance.

Final inspection problems

The buyer might find new damage, missing inclusions, unfinished repairs or a property that hasn’t been vacated as agreed.

Don’t refuse to settle or withhold money without advice. The available response depends on the contract and seriousness of the issue.

Linked transactions

Some people rely on the proceeds of one sale to complete another purchase.

A delay in one property can therefore affect several settlements. Tell your conveyancer early if your funds depend on another transaction.

Technical outages

Electronic networks, banks and land registries can experience technical problems.

Sometimes settlement can still happen later the same day. In other cases, it needs to be rescheduled or handled through another permitted process.

What happens if settlement is delayed?

A delayed settlement doesn’t have the same consequences in every contract.

The buyer and seller may agree on another time or date, but an extension isn’t automatic.

Depending on the contract, the party ready to settle may be able to charge default interest, recover certain costs or issue a formal notice requiring completion.

A serious or continuing default can lead to more significant consequences, including termination rights in some cases.

Don’t agree to an extension or refuse to settle without advice from your representative.

If the delay leaves you paying for movers, storage or temporary accommodation, keep evidence of those costs. Whether they can be recovered depends on the contract and the reason for the delay.

When can the buyer collect the keys?

The buyer can usually collect the keys once settlement has been completed and the seller has authorised their release.

That doesn’t always happen at the exact scheduled settlement time. Confirmation still needs to reach the real estate agent after the financial transaction completes.

Avoid scheduling deliveries or movers for the exact settlement time if you can.

Anyone moving that day should check delay and rescheduling policies in advance. Removalists will also need to know that access depends on settlement being confirmed.

What does a typical settlement timeline look like?

A standard property settlement unfolds over several weeks, with different tasks becoming more important as the settlement date gets closer. Buyers and sellers don’t need to manage everything at once, but each stage has its own deadlines.

Several weeks before settlement

The buyer progresses finance, organises inspections and confirms insurance requirements.

The seller begins the mortgage discharge process and deals with any outstanding obligations under the contract.

One week before settlement

The representatives finalise documents and settlement figures.

The buyer arranges the final inspection and confirms the required funds, while the seller prepares the property, keys and access devices.

On settlement day

The representatives, lenders and electronic network complete the financial settlement.

The documents are then lodged, and both parties remain available if urgent instructions are needed.

After settlement

The buyer receives confirmation and can usually collect the keys.

The seller receives the remaining proceeds after the mortgage and authorised payments have been dealt with.

For buyers, the priority is getting finance, inspections and funds organised before the date arrives. Sellers need to have the mortgage discharge, documents and property ready for handover.

The smoother those preparations are, the less likely settlement day is to be held up by something that could have been dealt with earlier.

If you want help keeping the paperwork, deadlines and settlement process on track, you can talk to property conveyancers on Bark and compare your options before appointing someone.