• Home
• News & Articles

Things to Expect During Your Settlement Period

The settlement period is the final stretch of your property transaction. And while the contract is signed, it’s not quite over yet. From arranging finances to final inspections, this phase is packed with essential steps that can make or break your settlement date. Here’s what you need to know to stay in control and avoid costly delays.

What Is the Settlement Period? 

The settlement period is the time between exchange of contracts and the official handover of the property. In New South Wales, it typically lasts 42 days, though this can be negotiated. During this time, both parties work to complete their obligations outlined in the contract of sale.

For buyers, this includes securing finance, arranging inspections, and finalising legal documentation. For sellers, it means ensuring the property is in the agreed condition and all paperwork is in order.

More information is available via NSW Fair Trading – Buying property. 

For Buyers: Your To-Do List Before Settlement Day 

It might feel like the hard part is over once you’ve signed the contract, but there’s still plenty to get done.

Here's what to expect: 

Confirm Your Finance 

Ensure your lender has formally approved your home loan and all conditions have been met. Your solicitor or conveyancer will liaise with your bank to book in a settlement date.

Pay Stamp Duty 

Stamp duty is due before or at settlement. This cost can be significant, and it’s crucial to have funds ready. First home buyers may be eligible for exemptions or concessions depending on their situation.

Check the First Home Buyer Assistance Scheme on the Revenue NSW website to see if you qualify.

Arrange Insurance 

From the date of exchange, the buyer generally bears the risk of the property. It’s smart to take out building insurance straight away to avoid being caught out by unexpected damage.

Conduct Final Inspection 

You’re entitled to a pre-settlement inspection to ensure the property is in the agreed condition. This usually happens 1–3 days before settlement. Check everything: appliances, removal of personal items, and that no new damage has occurred.

For Sellers: What You’re Responsible For 

While your solicitor or conveyancer will handle the legal documents, you’ll still need to:

• Discharge your mortgage (if applicable)
• Vacate the property by the agreed time on settlement day if selling with vacant possession
• Fix any repairs agreed to in the contract
• Leave the property in the condition it was sold

Timely communication with your legal representative is essential to avoid any last-minute issues.

How Does Settlement Actually Work? 

On settlement day, your solicitor or conveyancer will undertake all tasks in the PEXA workspace to ensure that the property is transferred (or conveyed) in accordance with the Contract.  All documents and funds required to transfer ownership are effected in the PEXA workspace, which may include:

• A lender (incoming mortgagee) will load source funds into the PEXA workspace
• If the vendor has a mortgage, a discharge of mortgage will be prepared by the mortgagee on title and a payout figure loaded into PEXA
• A Transfer is prepared, transferring the title from the vendor into the buyer’s name
• Stamp duty is paid in the PEXA website
• The purchaser pays the balance of the purchase price to the vendor
• The Transfer and any accompanying documents (such as notice of sale) are lodged and registered with NSW Land Registry Services
• Funds are disbursed to vendors
• All of this occurs within the PEXA workspace

It’s usually a seamless process handled between professionals, and you’re notified once it’s complete. From there, the keys are handed over and the property officially changes ownership.

Common Delays (and How to Avoid Them) 

Settlement delays can happen, and they often come down to avoidable issues:

• Incomplete finance approval
• Missing documentation
• Disputes over property condition

The best way to avoid delays? Work closely with an experienced property lawyer, respond promptly to requests, and don’t assume anything is automatic.

Final Tips for a Smooth Settlement 

• Book your removalist after your settlement date is confirmed
• Keep your phone handy on settlement day
• Communicate early and often with your solicitor or conveyancer
• Don’t make large financial commitments until everything is finalised

Whether you’re buying your first home or selling an investment property, a smooth settlement hinges on preparation and professional support.

Ready to settle with confidence? ClickLaw’s experienced property solicitors ensure every detail is handled; from contract review to keys-in-hand. Get in touch today to make your property settlement seamless and stress-free.