What happens on settlement day in Australia (2026 walkthrough)

Key takeaways

Settlement is the day legal ownership of the property transfers from the vendor to you, and funds transfer from your lender to the vendor. Almost all settlements in Australia now happen electronically via PEXA.
You don't need to be physically present. Your conveyancer or solicitor represents you. Your lender attends digitally. You collect the keys from the selling agent once settlement is confirmed.
Typical settlement length is 30 to 90 days from exchange of contracts; 30 to 45 days is the most common. The vendor and buyer agree on the date at contract signing.
Final inspection happens in the 5 to 7 days before settlement. You're checking the property is in the same condition as when you bought it, with all included chattels still present.
Things that can delay settlement: lender unable to release funds on time, last-minute title issues, missing rates or strata clearances, vendor moves out late, or PEXA workspace not signed by all parties.
If settlement is delayed by your side, you pay default interest (typically 8 to 12 per cent of the purchase price, prorated daily) until the deal completes. If it's delayed by the vendor, they may owe you the same.
Stamp duty is usually paid through your conveyancer at settlement, included in the funds flow. First home buyers eligible for concessions need the paperwork lodged before settlement.

General information, not legal advice

This guide covers the standard electronic settlement process for residential property in Australia. Conveyancing law and contract conditions vary by state. Always work with a licensed conveyancer or solicitor in the state where the property is located.

Overview: what settlement actually is

Settlement is the day the property legally becomes yours. Funds transfer from your lender to the vendor, title is registered in your name, and the keys are released. Everything else in the buying process, from pre-approval through to exchange of contracts, has been leading to this one event.

Almost every property settlement in Australia now happens electronically through a platform called PEXA (Property Exchange Australia). Paper settlement still exists for some edge cases, but the standard process is digital, and almost everyone in the chain, your conveyancer, your lender, the vendor’s conveyancer, the state revenue office, is logged in to the same online workspace.

The good news: as the buyer, your role on settlement day itself is minimal. The hard work was done in the lead-up. The actual settlement event runs 30 to 90 minutes and you don’t need to be present for any of it.

Settlement timeline from exchange to keys

Settlement length is agreed at the contract of sale and runs from the date of exchange (when both parties sign the contract) through to settlement day itself. Standard settlement lengths in Australia:

14 to 21 days: short, sometimes used in fast markets or when both parties are ready
30 days: common minimum in most metro markets
30 to 45 days: the most common range, gives both sides time to organise
60 days: typical when the vendor needs time to find their next home
90 days: longer, often used when the vendor is selling to relocate interstate

In the 30 to 45 day window between exchange and settlement, a lot happens. Your conveyancer lodges searches (title, rates, strata if applicable). Your lender finalises formal loan approval and prepares funds for release. You arrange building insurance to commence at exchange (most lenders require it). Stamp duty is calculated and the paperwork lodged. First home buyer concession applications are submitted to the state revenue office. The vendor organises their move-out and rates / strata payouts.

30 to 90 min

Typical duration of the electronic settlement event itself

Once parties have signed into the PEXA workspace and locked it

PEXA and how electronic settlement works

PEXA is the digital platform that runs almost every Australian property settlement. Think of it as a shared workspace where every party in the deal logs in, signs documents, and authorises the funds and title transfer.

The parties in the workspace are typically:

Your conveyancer or solicitor
The vendor’s conveyancer or solicitor
Your lender (for the new mortgage)
The vendor’s lender (to discharge their existing mortgage)
The state revenue office (for stamp duty and title registration)

In the 1 to 2 days before settlement, all parties sign their portion of the workspace. On settlement day, the workspace is locked and the actual settlement event runs: funds transfer simultaneously with title registration, stamp duty payment, and discharge of the vendor’s existing mortgage. PEXA orchestrates all of it in a single atomic transaction.

If any one party is not ready (a lender hasn’t signed, a conveyancer hasn’t lodged a required document), the workspace can’t lock and settlement is delayed.

Who does what on settlement day

Each party in the transaction has a specific role.

You (the buyer)

Almost nothing on settlement day itself. Your role was done in the lead-up: signing documents, transferring the balance of the deposit and your contribution toward stamp duty, and completing the final inspection. On settlement day, you wait for the call or text from the selling agent to say settlement has cleared and you can pick up the keys.

Your conveyancer or solicitor

Manages the entire PEXA workspace on your behalf. Signs documents, coordinates with your lender, calculates and lodges stamp duty, applies for any first-home buyer concessions, adjusts council rates and strata fees, and confirms settlement to you and the selling agent. See the full conveyancing guide for everything they handle.

Your lender

Prepares your loan funds for release on settlement day. Signs the PEXA workspace. Releases the funds at the locked-settlement step. Registers the new mortgage on the title.

The vendor’s lender

Calculates the payout figure for the vendor’s existing mortgage (if any), discharges the mortgage at settlement, and receives the payout funds.

The selling agent

Holds the keys (and any garage remotes, alarm codes, mailbox keys) until settlement clears, then releases them to you. The selling agent is also the contact for the final inspection.

The pre-settlement final inspection

The final inspection happens in the 5 to 7 days before settlement. You walk through the property with the selling agent and check that:

The property is in substantially the same condition as when you signed the contract, allowing for fair wear and tear from the vendor still living there.
All included chattels on the contract (dishwasher, oven, blinds, ducted heating, garden shed, swimming pool equipment, water tanks, solar systems, anything specified) are still present and operational.
No new damage has appeared since exchange.
The gardens haven’t been stripped of plants or fixtures that were part of the sale.
Any conditions on the contract that were to be met before settlement (repairs, removal of items, completion of works) have been completed.

Document everything

Take photos and video at the final inspection. If something is missing, damaged or broken that should have been there or working, raise it with your conveyancer immediately, before settlement clears. Once settlement has cleared, your leverage drops dramatically; you can still pursue the vendor for breach of contract, but the process is slow and expensive. Catching it before settlement lets your conveyancer hold up the funds and negotiate a settlement adjustment.

“Catch a missing dishwasher before settlement clears and the vendor adjusts the price. Catch it after, and you’re in court.”

Andy McMaster, Editor

The funds flow on settlement day

On settlement day, several flows happen simultaneously inside the PEXA workspace:

Your lender releases the loan funds (purchase price minus your deposit, plus any costs you’ve asked them to add to the loan).
You contribute the balance (your deposit was already paid at exchange; you also fund stamp duty and any conveyancing fees that aren’t being capitalised into the loan).
Stamp duty is paid to the state revenue office directly from the workspace.
The vendor’s existing mortgage is discharged: their lender receives the payout figure and the mortgage is removed from title.
The vendor receives the balance: purchase price minus their mortgage payout minus any rates / strata adjustments minus the selling agent’s commission.
Council rates and strata fees are adjusted: the vendor pays for the days they owned the property in the current billing period; you pay from settlement onwards.
Title transfers into your name and the new mortgage is registered.

Your conveyancer prepares a settlement statement showing every adjustment. Review it carefully; small errors (incorrect rates period, missing strata levy, wrong stamp duty calculation) are easier to fix before settlement than after.

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What can delay settlement

Settlement delays are unfortunately common. The most frequent causes:

Lender funds not ready: the most common cause. Your lender hasn’t finalised formal approval, or the funds aren’t in the workspace by the locked-settlement time.
Title search issues: a caveat, easement or restriction on title that wasn’t resolved in the lead-up.
Strata or rates clearance certificates missing: the vendor hasn’t obtained these in time.
Vendor hasn’t moved out: if the vendor is still in the property at settlement, you can’t take possession even after settlement clears legally.
PEXA workspace not signed: any party hasn’t signed their portion of the workspace before locking.
Stamp duty paperwork incomplete: first home buyer concessions sometimes require additional documents from the state revenue office.

If a delay looks likely, your conveyancer will notify the vendor’s conveyancer ahead of settlement day. Most delays push settlement out by 1 to 3 business days.

Default interest if you cause a delay

If you cause the delay, the contract typically requires you to pay the vendor default interest on the unpaid balance, at a rate specified in the contract (usually 8 to 12 per cent per annum, prorated daily). On a $700,000 unpaid balance at 10 per cent default interest, that’s about $192 per day.

If the delay continues beyond a few days, the vendor can issue a notice to complete, giving you typically 14 days to settle or face termination. If you still can’t settle, the vendor can terminate the contract and keep your deposit. Conversely, if the vendor causes the delay, the same default interest provisions can apply against them.

After settlement: keys, council notices, insurance

Settlement has cleared, you have the keys, and the property is legally yours. There are a few housekeeping items to take care of in the first 1 to 2 weeks:

Building and contents insurance: confirm building insurance is active from settlement date (or earlier, if your state transfers risk at exchange). For strata properties, contents-only is enough; the body corporate covers building.
Utilities: transfer or open electricity, gas, water, and internet accounts in your name. Take photos of meter readings at settlement; some retailers ask for them.
Council notice of change of ownership: most conveyancers lodge this for you; confirm with them. Future rates notices will come to you directly.
Strata body (if applicable):notify them of the change of ownership and your contact details. You’ll be invited to the next AGM.
Mail redirection: Australia Post offers a paid redirection service. Worth setting up for 6 to 12 months.
Locks:at minimum, change the front door lock. You don’t know who else has keys.

State-by-state notes

Settlement is broadly the same across Australia, but a few state-specific quirks matter.

New South Wales

Risk transfers to the buyer at exchange, not settlement. You need building insurance from the day of exchange. Standard settlement is 42 days but can be shorter or longer. Stamp duty is paid at settlement and is one of the highest in Australia for non-FHB purchases.

Victoria

Risk typically transfers at settlement, not exchange, though contracts can vary. Section 32 vendor statement must have been provided before contract signing. Default settlement length is often 60 days unless otherwise agreed.

Queensland

QLD uses a standard REIQ contract. The cooling-off period is 5 business days from exchange (unless waived). Final inspection is standard practice in the 5 days before settlement.

Western Australia

No statutory cooling-off period for residential property in WA, so more due diligence is done before contract signing. Settlement is coordinated through Landgate.

South Australia

Cooling-off is 2 clear business days from receipt of contract. Land tax and emergency services levy are adjusted at settlement in addition to council rates.

Tasmania

Cooling-off is 3 business days. Settlements are coordinated through the Land Titles Office, increasingly via PEXA.

ACT

Properties in the ACT are held under a 99-year Crown lease rather than freehold title. Lease rent isn’t payable but ground rent / land rent applies on some land-rent scheme properties. Settlement otherwise mirrors the standard process.

Northern Territory

No statutory cooling-off period for private treaty sales. Final inspection is standard practice. Stamp duty rates are different again; check the NT government calculator.

Sources and methodology

PEXA: How electronic settlement works · Workspace mechanics, party roles, settlement flow
Australian Registrars' National Electronic Conveyancing Council (ARNECC) · Model Operating Requirements for electronic conveyancing nationally
NSW Land Registry Services: e-Conveyancing · NSW-specific settlement and title transfer rules
Land Use Victoria: Standard property transfer process · VIC settlement timelines and risk-transfer at settlement
Titles Queensland: Settlement on a property purchase · REIQ contract conditions and QLD-specific final-inspection convention
Australian Banking Association: Mortgage discharge and settlement procedures · Lender obligations on funds release timing

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Common questions

How long does settlement take in Australia?

Settlement length is agreed at contract signing and typically ranges from 30 to 90 days. Most settlements are 30 to 45 days. Shorter settlements (14 or 21 days) are sometimes negotiated when both parties want to move quickly; longer ones (60 to 90 days) suit vendors who need time to find their next home. Once you're on settlement day itself, the electronic settlement via PEXA usually completes in 30 to 90 minutes.

Do I need to attend settlement?

No. Your conveyancer or solicitor represents you in the electronic PEXA workspace and handles every step. Your lender attends digitally. The selling agent holds the keys until settlement is confirmed. Your only physical involvement is collecting the keys after the agent gets the confirmation message, usually within an hour of settlement clearing.

What happens at the final inspection before settlement?

The final inspection happens in the 5 to 7 days before settlement. You walk through the property with the agent and check: the property is in the same condition as when you signed (allowing for fair wear and tear), all included chattels (dishwasher, blinds, garden shed, anything on the contract) are still present and working, no new damage, the gardens haven't been stripped, and the swimming pool equipment / water tanks / solar systems are operational. If anything is missing or broken, raise it with your conveyancer immediately, before settlement clears.

What if settlement is delayed?

If you cause the delay (for example, your lender can't release funds on time), you pay the vendor default interest on the unpaid balance, typically at 8 to 12 per cent per annum, prorated daily. On a $700,000 unpaid balance at 10 per cent, that's about $192 per day. The vendor can also issue a notice to complete, demanding settlement within 14 days; if you still can't settle, they can terminate and keep your deposit. If the vendor causes the delay, the same default interest can apply against them.

When do I get the keys?

Once PEXA confirms settlement has cleared, your conveyancer notifies the selling agent. The agent releases the keys to you, usually within an hour. Some agents will give you the keys when you arrive at their office; others wait for the confirmation email. Bring photo ID. Plan moving in for the day after settlement at the earliest, in case the day-of settlement is delayed.

Who pays for water, council rates and strata on settlement day?

These are adjusted on settlement day by your conveyancer. The vendor pays for the days they owned the property in the current billing period; you pay for the days from settlement onwards. The adjustment is typically a few hundred dollars in either direction and shows on the settlement statement your conveyancer prepares.

Do I need building insurance from the day of settlement?

Earlier in most states. Risk transfers to the buyer at different points depending on jurisdiction. In NSW, ACT and the NT, risk transfers at exchange. In VIC, QLD, SA, TAS and WA, risk typically transfers at settlement, but standard practice is to take out building insurance from the date of exchange to be safe. For strata properties, the body corporate carries the building insurance; you only need contents.