What is a settlement date?
Learn what a settlement date means, how the process works, and what to expect when buying or refinancing a home.
Property settlement is the final step in buying a home. It’s when legal ownership of the property transfers from the seller to you.
Settlement commonly happens between 30 and 90 days after contracts are exchanged, depending on the contract terms, state or territory, and circumstances of the transaction.
On settlement day, funds are transferred to complete the purchase and the property title transfers to your name.
What is a settlement date?
The settlement date is the day legal ownership of the property transfers to you.
You and the seller agree on this date when you exchange contracts. In Australia, settlement periods usually range from 30 to 90 days.
The exact timeframe depends on your state or territory and what both parties negotiate. Shorter settlement periods (for example, 30 days) may allow you to move in sooner, while longer periods (such as 60–90 days) may provide more time to arrange finances and complete inspections.
What happens before settlement day?
There are some steps that tend to happen between contract exchange and settlement day.
These typically include:
- Getting unconditional home loan approval - your lender finalises the loan and confirms the loan amount intended to be released at settlement, subject to final settlement conditions
- Property valuation by the lender - this confirms the property is worth enough to secure the loan amount
- Signing loan documents - your lender provides loan documents that outline important information, including your interest rate, repayments, loan features, and loan term.
- Organising building insurance - most lenders require proof of insurance before they’ll release loan funds. With Unloan, you’ll need to confirm insurance is in place before settlement
- Preparing legal and financial documents - your conveyancer handles title searches, contract review, and settlement paperwork
Do you need a pre-settlement inspection?
A pre-settlement inspection can help you confirm the property is in the expected condition before settlement, as it’s your last opportunity to inspect the property before legal ownership transfers to you.
You’ll usually do this on the morning of settlement day or the day before. You can confirm the property is in the same condition as when you signed the contract. You can also confirm any fixtures, fittings, and any included appliances are still there and working.
If you find issues, you can inform your conveyancer before settlement goes ahead. They can explain the options available to you.
What happens on settlement day?
On settlement day, funds are transferred to complete the purchase. Your conveyancer and the seller’s conveyancer coordinate the final exchange of documents and funds.
How does electronic settlement work?
Many property settlements in Australia now happen electronically through PEXA (Property Exchange Australia). Your conveyancer, the seller’s conveyancer, and the lenders all work in a shared digital workspace.
Documents are signed digitally. Funds transfer electronically. The title is lodged with the land registry automatically. This means you usually don’t need to attend settlement in person.
Electronic settlement can help reduce the risk of delays caused by paperwork errors.
Once settlement is complete:
- The property title transfers to your name - your conveyancer lodges this with the land titles office (or it happens automatically through PEXA)
- The seller receives the purchase price - minus any amounts they owe, such as an existing mortgage or agent commission
- Legal ownership transfers to you - and you can collect the keys from the real estate agent
Who is involved in property settlement?
Property settlement involves several parties, each with a specific role.
- The buyer - you provide the deposit, arrange finance, and instruct your conveyancer
- The seller - they hand over the property title and receive the sale proceeds
- Your lender - they release the loan funds and register a mortgage against the property title.
- A conveyancer or solicitor - they prepare legal documents, conduct title searches, calculate settlement adjustments, and represent you on settlement day
- The land titles office - they register the transfer of ownership and any new mortgage against the property
A conveyancer coordinates with all parties to make sure everything aligns on settlement day.
What costs are paid at settlement?
Several costs are typically finalised or paid on settlement day. These typically include:
- Stamp duty (land transfer duty) - a state government tax based on the purchase price.
- Lender fees - some lenders charge application, valuation, or settlement fees. With Unloan, there are no application fees, no ongoing fees, and no settlement fees*
- Conveyancing fees
- Settlement adjustments - your share of council rates, water rates, and body corporate levies from the settlement date onwards. Your conveyancer calculates these, so each party only pays for the time they own the property
Your conveyancer prepares a settlement statement that itemises every cost. You can review this with your conveyancer before settlement day.
What happens after settlement day?
After settlement, you’ll receive confirmation from your conveyancer that the property transfer is complete. You can then collect the keys from the real estate agent and move in.
Your first repayment date will depend on your loan setup and repayment frequency. If you’ve chosen fortnightly repayments, it’s due two weeks after settlement.
Post-settlement checklist
Once you’ve settled, you can look into these tasks:
- Collect the keys from the real estate agent
- Connect utilities - electricity, gas, water, and internet at your new address
- Set up your loan repayments
- Update your address with your employer, bank, and government agencies
- Review your building and contents insurance to make sure it’s active from settlement day
- Save a copy of your settlement statement for tax records
What can delay settlement?
Final approval and settlement timeframes can vary between lenders. Some reasons include:
- Incomplete loan documentation - missing payslips, unsigned contracts, or expired pre-approvals can stall the process
- Property title issues - caveats, easements, or unregistered interests on the title that need to be resolved before transfer
- Delayed lender approval - final approval timeframes can vary depending on the lender and application
- Administrative errors - a misspelled name or incorrect amount can delay settlement and may result in additional costs under the contract.
Your conveyancer and lender work together to resolve issues before settlement day. If a delay does occur, both parties usually need to agree on a new settlement date.
What is simultaneous settlement?
Simultaneous settlement is when you sell one property and buy another on the same day. The proceeds from your sale fund the purchase of your new home.
This can happen when you’re upgrading, downsizing, or relocating. Your conveyancer coordinates both transactions so the timing aligns.
If you’re buying only (not selling), this doesn’t apply. But if you’re refinancing an existing loan to a new lender, your new lender pays out the old loan and registers a new mortgage at settlement. With Unloan, there are no exit fees if you’re switching from another lender.
How long does property settlement take?
Settlement periods commonly range between 30 and 90 days. The exact timeframe depends on your state or territory, the complexity of the transaction, and what you and the seller negotiate. Off-the-plan purchases typically have longer settlement periods.
Get a home loan with no fees at settlement
With Unloan, you won’t pay application fees, ongoing fees, or settlement fees. You also get an annual loyalty discount that gets better every year, up to 0.30% per annum over 30 years. You can apply online in minutes. Learn more about Unloan.
Unloan is a division of Commonwealth Bank of Australia.
Applications are subject to credit approval, satisfactory security and you must have a minimum 20% equity in the property. Minimum loan amount $10,000, maximum loan amount $10,000,000, and total borrowings per customer across all Unloan loans is $10,000,000. (For purchase loans a minimum 10% equity is required - however a Lenders Mortgage Insurance (LMI) premium and higher interest rate apply. In some cases, depending on the property’s location or type, an LMI premium may also be required for LVR between 70.01% to 80%). For loans with Lenders Mortgage Insurance (LMI) the minimum loan amount is $10,000, maximum loan amount is $3,000,000 and total borrowings per customer across all Unloan loans is limited to $3,000,000).
Unloan offers a 0.01% per annum loyalty discount on the Unloan Live-In rate or Unloan Invest rate upon settlement. On each anniversary of your loan’s settlement date (or the day prior to the anniversary of your loan’s settlement date if your loan settled on 29th February and it is a leap year) the margin discount will increase by a further 0.01% per annum up to a maximum discount of 0.30% per annum. Unloan may withdraw this discount at any time. The discount is applied for each loan you have with Unloan.
*At Unloan, we do not charge any annual, application, banking, account, transaction, late or exit fees. In certain circumstances you may be required to pay a Lenders Mortgage Insurance (LMI) premium. Learn more about why this is applied and how it works. Government fees may also apply. Learn more about government fees here. Your current lender may charge an exit fee when refinancing.
Unloan is a division of Commonwealth Bank of Australia, and Commonwealth Bank does not provide tax (financial) advice under the Tax Agent Services Act 2009 (Cth). You should consider seeking independent tax advice from a registered tax agent, accountant or adviser before you make any decisions based on this information.
Applications are subject to credit approval, satisfactory security and you must have a minimum 20% equity in the property. Minimum loan amount $10,000, maximum loan amount $10,000,000, and total borrowings per customer across all Unloan loans is $10,000,000. (For purchase loans a minimum 10% equity is required - however a Lenders Mortgage Insurance (LMI) premium and higher interest rate apply. In some cases, depending on the property’s location or type, an LMI premium may also be required for LVR between 70.01% to 80%). For loans with Lenders Mortgage Insurance (LMI) the minimum loan amount is $10,000, maximum loan amount is $3,000,000 and total borrowings per customer across all Unloan loans is limited to $3,000,000).
Unloan offers a 0.01% per annum loyalty discount on the Unloan Live-In rate or Unloan Invest rate upon settlement. On each anniversary of your loan’s settlement date (or the day prior to the anniversary of your loan’s settlement date if your loan settled on 29th February and it is a leap year) the margin discount will increase by a further 0.01% per annum up to a maximum discount of 0.30% per annum. Unloan may withdraw this discount at any time. The discount is applied for each loan you have with Unloan.
*At Unloan, we do not charge any annual, application, banking, account, transaction, late or exit fees. In certain circumstances you may be required to pay a Lenders Mortgage Insurance (LMI) premium. Learn more about why this is applied and how it works. Government fees may also apply. Learn more about government fees here. Your current lender may charge an exit fee when refinancing.
Applications are subject to credit approval, satisfactory security and minimum deposit requirements. Full terms and conditions are found on our Unloan Terms and Conditions. Modified Terms and Conditions will be set out in our Notice of Variation Agreement, if you are approved. This article is intended to provide general information only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice.
Unloan offers a 0.01% per annum loyalty discount on the Unloan Live-In rate or Unloan Invest rate upon settlement. On each anniversary of your loan’s settlement date (or the day prior to the anniversary of your loan’s settlement date if your loan settled on 29th February and it is a leap year) the margin discount will increase by a further 0.01% per annum up to a maximum discount of 0.30% per annum. Unloan may withdraw this discount at any time. The discount is applied for each loan you have with Unloan.
*At Unloan, we do not charge any annual, application, banking, account, transaction, late or exit fees. In certain circumstances you may be required to pay a Lenders Mortgage Insurance (LMI) premium. Learn more about why this is applied and how it works. Government fees may also apply. Learn more about government fees here. Your current lender may charge an exit fee when refinancing.
