Glossary · Australian property
Settlement.
The legal completion of a property purchase. Title transfer from vendor to buyer, mortgage discharge or registration, exchange of funds. Typically 30, 42, 60, or 90 days after contract exchange in AU.
Mechanic: settlement is when ownership legally changes hands. Conducted electronically via PEXA (Property Exchange Australia) for all states except WA's separate platform. Buyer's solicitor / conveyancer, vendor's solicitor, buyer's lender, and vendor's lender all coordinate via the e-settlement workspace.
Settlement-day events (in order, usually 4pm-5pm AEST): (1) lender disburses loan funds into the workspace, (2) buyer's solicitor pays the balance from buyer's funds, (3) workspace transfers ownership of title at the relevant Land Registry, (4) vendor's discharging lender releases the existing mortgage, (5) buyer's lender registers new mortgage, (6) keys handover (separate from the legal settlement; usually the agent contacts buyer once settlement completes).
Delays: bank-side delays (especially Mondays, Fridays, and month-ends) can push settlement to next business day. Penalty interest may accrue if the delay is buyer-side. Pre-settlement inspection (typically 1-3 days before) lets the buyer walk the property in vendor-vacated condition and flag any chattel removal disputes.
Costs at settlement: balance of purchase price (10% deposit was already paid at exchange), stamp duty, mortgage registration fees, settlement-agent fee, council rates apportionment, water-board apportionment, body-corp / strata fees apportionment.
Worked example
Contract exchange 1 Feb. 60-day settlement = 1 April. Buyer pays 10% deposit at exchange ($85K on $850K). Between 1 Feb and 1 April: lender approves, valuer values, conveyancer coordinates. On 1 April: buyer pays balance $765K + ~$32K stamp duty + ~$200 mortgage rego + ~$1,500 conveyancer = $798,700 net to settle. Title transfers; keys handed over at 5pm.
Source
PEXA Operating Rules; state Land Registry Acts (e.g., Real Property Act 1900 (NSW)).
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