Property Settlement: How It Works and How Long It Takes

Settlement is the day the buyer pays the balance of the price and becomes the owner. Almost every property settlement in Australia now happens electronically, with no one meeting in a room and no cheques. What happens before that day decides whether it goes smoothly.

Optimum Lawyers is a property law firm in Parramatta Square, led by principal solicitor Wisam Assi. We act on property in every Australian state and territory.

How long the settlement period is

The settlement date is set by the contract. In NSW the standard contract defaults to 42 days, in Queensland 30 days is common, and in Victoria and WA it is whatever the parties agree. Longer or shorter periods can be negotiated, and the date matters because missing it can put a party in default.

Between exchange and settlement

1. Searches and enquiries on the title, council, water and strata records.
2. Finance approval and the lender preparing loan documents.
3. Duty assessed and paid, or arranged to be paid at settlement.
4. Adjustments calculated for council rates, water, land tax where applicable, and strata levies.
5. A final inspection by the buyer shortly before settlement.

What happens on settlement day

Each party's lawyer or conveyancer, and each lender, signs the settlement in an electronic workspace. At the agreed time the funds move, the seller's mortgage is discharged, the transfer and any new mortgage are lodged with the land registry, and the agent is told to release the keys. You do not need to attend.

PEXA and electronic settlement

PEXA is the main electronic lodgement network used for settlements in Australia, and Sympli also operates in some states. Each party's representative pays a fee to the network for the settlement, and it is passed on to you as a disbursement in your conveyancing bill. You do not need your own PEXA account. Your lawyer or conveyancer handles it. See conveyancing fees.

When settlement is delayed

If one side is not ready on the settlement date, the other may be able to serve a notice to complete or a default notice, and claim interest or costs. Which notice and how long it gives depends on the state and the contract. See notices to complete.

What clients say

“He represented me through a time-sensitive property purchase and was exceptional from start to finish.”

Jarrod Oliver, Google review

Questions about settlement

How long does property settlement take?

It depends on the contract. The NSW standard contract defaults to 42 days, 30 days is common in Queensland, and in other states it is whatever the parties agree.

Do I need to attend settlement?

No. Settlement is electronic and handled by the lawyers, conveyancers and lenders.

What are PEXA fees?

A fee charged by the electronic settlement network for each settlement, passed on as a disbursement in your conveyancing bill.

When do I get the keys?

Usually on settlement day, once the agent is told settlement has completed.

Related: Conveyancing fees | Notices to complete | Interstate conveyancing