The Complete Guide to Property Settlement in Australia
Property settlement is the legal process that finalises a property sale, transferring ownership from seller to buyer. In Australia, it typically takes 30 to 90 days from exchange of contracts, with 42 days being the standard in NSW. Almost all settlements are now handled electronically through the PEXA platform.
What Happens Between Exchange and Settlement?
After contracts are exchanged (signed by both parties), a defined settlement period begins. During this time:
- Buyer's conveyancer conducts final title searches and checks for any encumbrances, caveats, or issues registered against the property.
- Buyer arranges finance — the lender prepares mortgage documents, conducts a valuation, and issues formal approval.
- Seller's conveyancer prepares transfer documents and liaises with the seller's bank to arrange mortgage discharge (if applicable).
- Settlement adjustments are calculated — council rates, water rates, strata levies, and any other costs are divided between buyer and seller based on the settlement date.
- Pre-settlement inspection — the buyer inspects the property (usually 1–3 days before settlement) to confirm it is in the agreed condition.
- Settlement day — funds are transferred, title is registered in the buyer's name, and keys are handed over.
Settlement Timelines by State
| State | Standard Settlement Period | Notes |
|---|---|---|
| NSW | 42 days (6 weeks) | Most common standard period |
| VIC | 30–60 days | 30 days common for houses, 60 for off-plan |
| QLD | 30–42 days | Can be as short as 14 days by agreement |
| WA | 30–42 days | Settlement agents handle the process |
| SA | 30–42 days | Standard is 42 days |
| TAS | 30–60 days | Negotiable between parties |
| ACT | 30–42 days | Similar to NSW |
| NT | 30–42 days | Can vary in remote areas |
Settlement periods are negotiable between buyer and seller at the time of contract. Shorter periods suit sellers who need quick access to funds; longer periods suit buyers who need more time to arrange finance.
Electronic Settlement via PEXA
Since 2020, nearly all property settlements in Australia are conducted electronically through PEXA (Property Exchange Australia). This means:
- No physical meeting is required on settlement day
- Funds are transferred digitally between banks
- Title registration happens automatically through the land registry
- Settlement typically completes within hours, not days
Your conveyancer manages the entire PEXA process on your behalf.
Settlement Adjustments Explained
At settlement, certain costs are divided between buyer and seller based on the settlement date:
- Council rates: If the seller has prepaid rates for the full year, the buyer reimburses the portion from settlement to year-end. Typically $500–$2,000.
- Water rates: Similar adjustment for water charges. Usually $200–$600.
- Strata/body corporate levies: For apartments, quarterly levies are adjusted at settlement.
- Land tax: If applicable (investment properties), land tax may be adjusted.
Settlement Costs
The main costs associated with settlement include:
- Conveyancing fees: $1,000–$2,000 (up to $5,000 for complex matters)
- PEXA fees: $80–$150 (included in most conveyancing quotes)
- Title search fees: $20–$50
- Registration fees: $150–$300 (varies by state)
What Can Go Wrong?
Settlement delays can occur due to:
- Finance issues: The buyer's loan is not approved or documents are not ready in time
- Title problems: Unresolved caveats, encumbrances, or incorrect title details
- Bank delays: The seller's bank is slow to prepare discharge documents
- Property condition: Pre-settlement inspection reveals damage or missing items
If settlement is delayed, the party at fault may be liable for penalty interest — typically calculated at 10–12% per annum on the purchase price. This can be hundreds of dollars per day.
Pre-Settlement Inspection Tips
- Conduct the inspection 1–3 days before settlement, not weeks before
- Check that all included fixtures and fittings are present
- Confirm any agreed repairs have been completed
- Test lights, taps, toilets, and appliances
- Take photos of any issues and notify your conveyancer immediately
Plan for Your Settlement
Use the LookingToSell calculator to factor settlement costs into your total buying or selling budget. It covers conveyancing, adjustments, and every other fee involved in your property transaction.