Settlement

Buying & Selling

The legal process of transferring property ownership from seller to buyer and finalising the financial transaction.

Full Explanation

Settlement is the final step in a property purchase where the balance of the purchase price is paid, the title is transferred, and the keys are handed over. In most Australian states, settlement occurs 30 to 90 days after contracts are exchanged. Your solicitor or conveyancer prepares a settlement statement that accounts for adjustments such as council rates, water charges, and strata levies paid in advance by the seller.

Example

Settlement is scheduled for 42 days after exchange. On settlement day your lender transfers the funds, the title is registered in your name, and you receive the keys.

Frequently Asked Questions

What happens if settlement is delayed?

If the buyer causes the delay, they may need to pay penalty interest to the seller for each day of delay. If the seller causes it, the buyer may be entitled to compensation. In severe cases, the non-delaying party may be able to terminate the contract.

What are settlement adjustments?

Adjustments ensure each party pays their fair share of ongoing costs like council rates and water charges. If the seller has prepaid rates beyond the settlement date, the buyer reimburses them for the remaining period.