Settlement

Settlement is the day the balance of the purchase price is paid to the vendor, the title transfers to the purchaser, and possession passes.

What happens

Lawyers exchange funds and complete the electronic transfer of title through Landonline. The purchaser's lender advances the loan. Rates, water and any body corporate levies are apportioned between the parties as at settlement date. Keys are released once the vendor's lawyer confirms funds have been received.

The pre-settlement inspection

The purchaser is generally entitled to inspect the property shortly before settlement to confirm it is in the same condition as at the date of the agreement, and that the listed chattels are present and working. Do this properly. Once settled, remedies are limited and slow.

Common causes of delay

• Funds not available in time from a lender
• A caveat or undischarged mortgage on the title
• Outstanding council requisitions
• Chattels missing or damaged, disputed at the last minute
• Vendor has not vacated

Late settlement usually triggers default interest at the rate in the agreement, which is typically well above market.

Common misunderstanding

Settlement date is not "around then". It is a contractual obligation with financial consequences for missing it. Give your lawyer and lender plenty of notice, and confirm loan documents are signed well in advance.

Related terms

Last reviewed: 1 August 2026 · General information only, not legal advice.

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