Property settlement is the final step before you become the official owner of your new home. It’s the process through which the property’s legal ownership is transferred from the seller to the buyer. 

When making an offer to buy a property, you’ll likely need to propose a preferred settlement period. Don’t take this decision lightly – offering a settlement window that’s too short could leave you pressed for time and facing penalties, while a period that’s too long might deter the seller from accepting your offer.

How long does property settlement take?

The settlement period begins from the day the contract of sale is signed by both parties, and the length of the settlement will already be indicated in one of the clauses stated in the contract. The length of the property settlement is mutually agreed upon by the seller and the buyer – this means that how long it takes can be negotiated.

That said, settlement typically takes between 30 and 90 days. It’s suggested that you reach out to a solicitor or conveyancer before you submit or accept an offer so you know just how long you might need.

What is involved in property settlements?

During the settlement period, you’ll likely be busy gathering and submitting paperwork and attending appointments to complete the property transaction. Key tasks during the settlement period include:

  • Conduct a final inspection of the property

  • Check and sign the transfer of documents

  • Verify and provide identity documents and forms

  • Secure unconditional home loan approval (if buying)

  • Insure the property

  • Adjust your water and sewer charges

  • Check on your local council rates

A conveyancer can help you tick all the boxes prior to the settlement day to prevent any delays.

See also: Settlement day checklist

Should you keep the settlement period long or short?

Short and long settlement periods each have their pros and cons, and these will vary depending on whether you are buying or selling a property.

For buyers, a shorter settlement period can mean moving in sooner and cutting rental costs. However, a longer settlement provides more time to organise documents, complete inspections, and secure unconditional loan approval, which may take a few weeks.

Sellers may prefer a shorter settlement period for quicker access to the proceeds from the sale. However, a longer settlement could offer more time to pack, transition into a new home, or provide proper notice to any tenants currently occupying the property.

In more complex transactions, such as buying an off-the-plan property, negotiating a longer settlement period is advisable to account for additional requirements and potential delays.

Tips to make the settlement process smoother

There are several things you are highly encouraged to do before the settlement process begins. When done properly and timely, these can help you progress through the settlement process with your mind at ease.

  • Secure insurance for the property
    Depending on the state or territory you live in, you’re either responsible for insuring the property when your offer is accepted or when settlement is complete. Make sure the home you’re buying or selling is adequately protected through the entire process.

  • Do a title search
    Conducting a title search can help you make sure what you are buying is legitimate. Typically, this is done by your conveyancer.

  • Be thorough and accurate when filling out documents
    Forms, cheques, and other files are of the utmost importance in transactions like this. You’d hate to delay settlement purely because of a spelling error.

  • Stay in regular communication with your conveyancer or solicitor
    It’s important that you stay on top of any and all communication from your conveyancer or solicitor during the settlement process. Doing so can help avoid last-minute issues.

  • Get your pockets ready
    Buying and selling property is expensive. Make sure you’re ready to pay your conveyancer, lender, building inspector, and your state or territory government (it will likely ask you to pay stamp duty). Not to mention, if you’re buying, you’ll be asked to put down a deposit and if you’re selling, you’ll need to pay your real estate agent’s fees.

Once you complete the process, as a buyer, you will receive the keys to your new home and can begin enjoying it. For sellers, the completion of settlement means receiving the proceeds from the property sale, allowing you to move on to your next chapter, whether that’s purchasing a new home, investing, or other plans you may have.

Article originally written by Gerv Tacadena in 2022. Last updated by Brooke Cooper in 2024.
Image by Thought Catalog on Unsplash.

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