Settlement

What is settlement?

Settlement is the final legal step in the property buying process where ownership officially transfers from the seller to you as the buyer. This crucial day involves the exchange of all funds, legal documents, and keys. Settlement typically occurs 30-60 days after your purchase contract is signed, giving both parties time to complete all necessary preparations and legal requirements.

Before settlement preparation

The weeks leading up to settlement are critical for ensuring everything goes smoothly. Your conveyancer or solicitor will coordinate most activities, but you'll need to complete several important tasks to prepare for this significant day.

• Arrange building and pest inspections within specified timeframes
• Finalise loan approval and review all loan documentation
• Organise conveyancer or solicitor for legal representation
• Arrange property insurance to commence from settlement date
• Book removalists and plan your moving logistics

Pre-settlement inspection

Conducted 1-2 days before settlement, this final inspection ensures the property remains in the same condition as when you agreed to purchase it. This is your last opportunity to identify any issues before taking ownership and can prevent disputes or delays on settlement day.

• Check property condition matches the original contract terms
• Ensure all fixtures and fittings listed in contract are present
• Verify any agreed repairs have been completed satisfactorily
• Test major appliances and systems if included in sale
• Take photos for your records

Settlement day process

On settlement day, your legal representative coordinates the complex exchange of documents and funds while you typically wait for confirmation that everything is complete. The process usually takes place at your lender's offices or through electronic settlement systems.

• Your solicitor receives keys once all conditions are met
• Loan funds are transferred from your lender to the seller
• Property transfer documents are lodged with land registry
• Property ownership officially transfers to your name
• You can collect keys and take immediate possession

After settlement priorities

Once settlement is complete and you have the keys, several important tasks need immediate attention to ensure your new home is properly set up and your obligations are met.

• Arrange connection or transfer of utilities (electricity, gas, water)
• Update your address with banks, employers, and government agencies
• Collect keys and any garage remotes or security codes
• Begin making mortgage repayments according to your loan schedule
• Arrange contents insurance if not already organised

Common settlement issues

While most settlements proceed smoothly, being aware of potential problems can help you prepare for and avoid delays that could affect your moving plans or result in additional costs.

• Finance approval delays or last-minute lending issues
• Property defects discovered during final inspection
• Missing or incorrect legal documentation
• Vendor delays in vacating the property
• Title issues or boundary disputes