Reaching settlement day is huge. After years of saving for a deposit, months of searching for the perfect property, and weeks of negotiating with the seller, you’re finally on the brink of homeownership.

What is settlement day?

Settlement day is the moment everything falls into place.
On this day:

  • The seller officially receives the funds from the sale

  • Your lender finalises the home loan in your name

  • Legal ownership of the property is transferred to you

Before this, you’ll need to ensure:

  • A pre-settlement inspection has confirmed the property is in the same condition as in previous visits

  • You’ve secured unconditional home loan approval

  • All required documents are with your conveyancer or solicitor

Do I need to attend settlement day?

Good news: You don’t need to physically attend the settlement process. In fact, thanks to digital systems, neither buyers, sellers, nor their representatives typically need to be present in person.

Previously, settlements were handled at land title offices, but now they’re done online. Your solicitor or conveyancer manages everything and will notify you when the transaction is complete.

What happens on settlement day?

Although your day may feel like a nail-biter, the actual settlement process is typically quick, often wrapped up within a couple of hours in the afternoon.

Here’s what normally happens:

1. Funds change hands 

Buying a home is an exciting milestone, but parting with your hard-earned deposit can feel bittersweet. Settlement day will see the seller receive the money from the sale of their property, and the buyer will hand over their deposit to see it done. 

2. Home loan is provided

If you’re taking out a home loan to buy the property, your lender will also be involved with the settlement process. It will need to hand over its portion of the sale price and officially provide you with a home loan, on which you’ll need to start making repayments in the coming weeks. 

3. Paperwork is checked and completed

Representatives of both parties will check over the paperwork provided to ensure it’s complete and accurate.

4. Title is handed over 

The seller’s representative will hand the property title for the property being purchased to the buyer’s representative. If there’s a mortgage in place, the lender holds the title until the loan is repaid.

5. You can retrieve the keys and enjoy your new home

Once the title has been handed over, the buyer officially becomes the new owner. They can then collect the keys and start settling into their new home.

See also: What you need to know about moving in on settlement day

What happens if settlement is delayed? 

While everyone hopes for a smooth settlement day, delays can sometimes occur. If this happens, don’t panic – here’s what you need to know and what steps to take.

There are a few common reasons for settlement delays, such as:

  • Lender issues: Last-minute problems with loan approvals or the release of funds

  • Incomplete paperwork: Missing or incorrect documentation from either party

  • Disputes over property condition: For example, if the property doesn’t match its condition during the pre-settlement inspection

  • Buyer or seller unpreparedness: If either party hasn’t fulfilled their obligations by the due date

If settlement is delayed, both parties can typically agree to extend the settlement period to allow time for any issues to be resolved.

If the delay is caused by a particular party, they may face penalties, such as an interest charge for each day the settlement is delayed.

What to do after settlement 

Once settlement is complete, it’s time to celebrate. Open a bottle of champagne, do a happy dance, and enjoy knowing you’ve made it. But before the party gets too lively, there are a few things to take care of:

Insurance

The most important thing to organise after (or before) settlement day is home insurance. It’s vital to insure what’s likely your most expensive asset. 

Many states and territories – including NSW and Victoria – see the buyer take responsibility for insuring their property as soon as settlement is complete and any damages occurring afterwards are their responsibility. 

However, Queensland, South Australia, Tasmania, and the ACT see a buyer responsible for the property – and therefore its insurance – shortly after the contract of sale is signed.

Internet, electricity, water, and other services 

If you’re planning to move into the property you’ve purchased, you’ll likely need to contact service providers to get everything connected.

How easy or challenging this process is will depend on the age of the property and whether it’s been vacant for a while. In some cases, it might take a few days to secure services.

Rates and strata levies 

While potentially less urgent, it’s worth bearing in mind that you’re now your home’s owner and, thus, are responsible for paying rates and, if applicable, strata fees.

The settlement sheet will usually show the adjustment for local council rates – you would have refunded the seller for any rates they’d paid in advance. That’s generally the case for strata fees too.

First published April 2011; updated by Gerv Tacadena in September 2022; last updated by Brooke Cooper in January 2025.

Image by Aubrey Odom on Unsplash

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