Consider this if…
- Your settlement is coming up and you want to know what actually happens
- You have been sent a statement of adjustments and cannot follow it
- Settlement has been delayed and you do not know where that leaves you
- The other side has asked to extend and you are not sure whether to agree
- You want to inspect the property before settlement and do not know your rights
- You have been served a notice about a failure to settle
How it works
Booking and preparation
Settlement is booked in the electronic workspace and both sides load their documents. Your lender joins if there is a loan. We check the transfer and the title details against the contract.
2–3 weeks before
Figures and adjustments
Rates, water and any owners corporation fees are apportioned between you and the vendor at the settlement date. We prepare or check the statement of adjustments and give you one number for what you need available.
1–2 weeks before
Pre-settlement inspection
Most contracts allow a final inspection shortly before settlement. Use it. It is the last chance to raise anything that has changed since you signed.
The few days before
Settlement
Funds and documents are exchanged electronically, the transfer is lodged, and the vendor's mortgage is discharged. It usually takes minutes once everyone is ready.
On the day
Afterwards
We confirm settlement to you and to the agent so the keys are released, and notify the council and water authority that the property has changed hands.
Same day
Fee
Quoted in writing before we start
GST inclusive
Excludes: Government charges, search fees and settlement costs are separate and charged at cost.
Settlement is part of the conveyancing fee quoted at the start. It is not a separate charge.
Turnaround
A lawyer replies to your enquiry within one business day.
What settlement actually is
Settlement is the moment the purchase completes. The balance of the price is paid, the vendor's mortgage is discharged, the transfer of land is lodged for registration, and the property becomes yours.
In Victoria this happens in an electronic workspace rather than in a room. Lawyers and lenders for both sides join it, load their documents, confirm the figures, and settle. Nobody attends anything. Once everyone is ready it takes minutes.
The consequence of that is worth understanding: the work is all in the preparation. By settlement day either everything is in place or it is not, and there is very little that can be fixed in the moment.
What has to be ready
Your funds. In the right account, cleared, in the right amount. The figure is not simply the balance of the purchase price — it is that plus duty, registration fees and adjustments, less your deposit and your loan. We give you one number, and it is the number to work to.
Your lender. If you are borrowing, your lender joins the settlement and provides the loan funds. They need their own documents signed and returned well in advance, and they set their own deadlines. Lender delay is one of the most common causes of a settlement not proceeding.
The vendor's discharge. The vendor's bank has to lodge a discharge of the existing mortgage. This is outside your control and is the other most common cause of delay. It is worth confirming early rather than assuming.
The figures. Adjustments agreed between the parties, so there is no argument on the day about who owes what.
Adjustments, plainly
Rates, water charges and owners corporation fees are billed for a period — quarterly, or annually. When a property changes hands mid-period, those costs are split at the settlement date. The vendor pays for the days they owned it, you pay for the days you will.
If the vendor has paid a bill covering a period after settlement, you reimburse them for your share. If a bill is unpaid, it is adjusted the other way. Land tax is treated differently depending on the contract, and is one of the items worth checking rather than accepting.
None of it is complicated, but it does change the final number, and buyers are frequently surprised by it if nobody has explained it in advance.
The pre-settlement inspection
Most contracts allow a final inspection in the days before settlement. Take it.
You are checking three things: that the property is in the same condition it was when you signed, that whatever was included in the sale is still there, and that any repairs the vendor agreed to have actually been done.
If something is wrong, tell us before settlement. Before settlement there is leverage, because the vendor wants the money. After settlement the problem is yours and the remedy is a claim rather than a conversation.
When settlement slips
It happens, and it is usually nobody's fault in particular. Finance is not ready. The discharge has not been lodged. A figure is in dispute.
The contract sets out what follows. Generally the party who is not ready becomes liable for penalty interest from the settlement date, at whatever rate the contract specifies. If the delay continues, the other party can serve a notice requiring settlement within a stated period, and failing to comply with that notice can put the contract at risk — including the deposit.
Most delays are short and get sorted between the lawyers within a day or two. What makes a delay expensive is not the delay itself, it is not knowing your position: agreeing to an extension without documenting who pays for it, or letting a notice period run without responding.
If your settlement is not going to proceed, the useful thing is to say so early. A day's notice gives everyone options. An hour's notice does not.
If you are already in trouble
If you have been served a notice about a failure to settle, or the other side is threatening to end the contract, that is a different conversation and a time-critical one. Tell us the date on the notice when you contact us — it is the first thing we need to know.
Frequently asked questions
Do I need to be there for settlement?
No. Settlement in Victoria is electronic, so there is nothing to attend. Your lawyer and your lender act in the electronic workspace on your behalf. You need your funds available in the right account beforehand, and you need to be reachable on the day in case something needs a quick decision.
What are adjustments?
Council rates, water charges, land tax where it applies, and owners corporation fees are usually paid for a period rather than a day. At settlement they are apportioned so that the vendor pays for their part of the period and you pay for yours. The statement of adjustments sets out the arithmetic, and it changes the final figure you need — sometimes by a few hundred dollars, occasionally by more.
Can I inspect the property before settlement?
Most contracts give you a right to a final inspection shortly before settlement. It is worth taking. You are checking that the property is in the condition it was in when you signed, that anything included in the sale is still there, and that any agreed work has been done. Raise problems before settlement, because afterwards your options narrow considerably.
What happens if settlement is delayed?
The contract governs it. Typically the party who is not ready becomes liable for penalty interest running from the settlement date, and if the delay continues the other party can serve a notice requiring settlement within a set period. Most delays are short and get resolved between the lawyers. The ones that become expensive are the ones nobody addressed early.
The vendor has asked to extend settlement. Should I agree?
It depends what it costs you. An extension may be entirely reasonable, or it may leave you paying for finance, storage or accommodation you had not planned for. You are generally not obliged to agree, and if you do, the terms should be documented — including who bears the costs. Ask before you agree to anything verbally.
What is penalty interest?
Interest payable by whichever party fails to settle on time, calculated at the rate set out in the contract and running from the settlement date until settlement occurs. The rate is contract-specific, so check yours rather than assuming a standard figure. It is one of the reasons a delay of a few days is worth resolving quickly.
Related services
If settlement is close or has already slipped, say so — that changes how quickly we need to move.
Talk to us about your settlement