The time property settlement takes can vary. Here’s how much time you might need to settle your property transaction.
You’ve found your dream home or buyer, the offer’s been accepted, and now the wait begins. But how long will it be until you get the keys – or the cash? Here’s what happens during the settlement period, and how to avoid last-minute delays.
How long does property settlement take?
Property settlements typically take 30 to 90 days, with the usual settlement in NSW being 42 days. It begins the moment both parties have signed the contract of sale, which will state the settlement period. Both seller and buyer can negotiate the length of the property settlement, but they need to come to an agreement before the process can begin.
Don’t take these negotiations lightly – too short a settlement window could leave you pressed for time and facing penalties while too long a window might deter the other party.
It’s suggested you reach out to a solicitor or conveyancer before you submit or accept an offer to be sure how long you might need, taking into account the process in your state or territory and your financial situation.
Note: The buyer usually pays the deposit when the contract is signed. It’s held in trust (often in the name of the real estate agent) and released to the seller on settlement day.
What needs to happen before property settlement?
The settlement period will likely see you busy gathering and submitting paperwork and attending appointments needed to complete the property transaction – that’s why it’s important to allow enough time. Below is a breakdown of what buyers and sellers typically need to do during the settlement period:
| For buyers | For sellers |
|---|---|
| Verify and provide identity documents | Verify and provide identity documents |
| Check and sign the transfer of documents | Check and sign the transfer of documents |
| Secure unconditional home loan approval (if buying with a mortgage) | Request your lender discharges your mortgage (if applicable) |
| Organise and conduct a building and pest inspection | Ensure the property is vacant by settlement day (unless otherwise agreed) |
| Adjust services, body corporate fees, and rates charges (you’ll need to compensate the seller for any balances you inherit) | Pay services, body corporate fees, and rates up to or beyond settlement date (your solicitor or conveyancer will handle any overlap) |
| Conduct a final inspection of the property shortly before settlement day | Ensure the property’s condition remains as it was during inspections and any agreed repairs are completed |
| Collect the keys and move in | Hand over the keys, as well as any remotes and pin codes needed to access the property |
A solicitor or conveyancer can help you tick all the boxes prior to the settlement day to prevent any delays.
See also: Settlement day checklist
On settlement day, the buyer or their lender will transfer the remainder of the agreed sale price to the seller and, if applicable, they’ll officially take on a mortgage. Meanwhile, the sellers real estate agent will typically hand over the buyer’s deposit (which is normally held in a trust during settlement) and the buyer or their lender will pay the remaining balance.
Should you opt for a long or short settlement period?
Short and long settlement periods each have their pros and cons, and these will vary depending on whether you are buying or selling a property.
For buyers, a shorter settlement period can mean moving in sooner and saving on rent. However, a longer settlement provides more time to organise documents, complete inspections, and secure unconditional loan approval, which may take a few weeks.
For sellers, a shorter settlement period as it allows for faster access to the sale’s proceeds. A longer settlement gives them more time to pack, move into a new home, or provide adequate notice to tenants.
In more complex transactions, such as buying an off-the-plan property, a longer settlement period is generally advisable to allow for additional requirements and potential delays.
In some cases, you may even be able to extend the settlement timeline if issues arise.
Tips to make the settlement process smoother
There are several things you are highly encouraged to do before the settlement process begins. When done properly and timely, these can help you progress through the settlement process with your mind at ease.
-
Secure insurance early
Depending on your location, buyers may be responsible for insurance from the contract date, not just settlement. Make sure you’re covered either way. -
Conduct a title search
Usually done by your conveyancer, a title search ensures there are no ownership or zoning issues with the property. -
Check your paperwork carefully
A misspelled name or missing form could delay the entire transaction. Triple-check everything before signing. -
Stay in touch with your conveyancer
They’ll flag key deadlines and help resolve hiccups before they snowball into costly delays. -
Prepare for all costs
From stamp duty and inspections to real estate agent fees and mortgage establishment charges – make sure your finances are ready.
Once settlement is complete, the buyer receives the keys to their new home and can finally settle in. For the seller, it means receiving the sale proceeds and moving on to their next chapter – whether that’s buying again, investing, or taking a well-earned break.
Property settlement timeline FAQs
What is the standard property settlement period in Australia?
Most property settlement periods in Australia range from 30 to 90 days. In New South Wales, 42 days is the most common timeframe, while 60 days is often preferred in other states.
The exact timeframe is typically outlined in the contract of sale and can be negotiated between the buyer and seller before it’s signed.
Can I choose the length of the settlement period?
Yes. The settlement period can be negotiated between the buyer and seller before the contract is signed. Common timeframes include 30, 42, or 60 days, but longer or shorter periods may be agreed upon to suit each party’s circumstances.
When does the settlement period start?
The settlement period begins once the contract of sale is signed and dated by both parties. This date is used to calculate the official settlement day.
What happens during the settlement period?
During the settlement period, both the buyer and seller (or their legal representatives, e.g. their solicitor or conveyancer) complete a range of tasks, such as:
- Finalising finance
- Organising inspections
- Adjusting rates and fees
- Preparing legal paperwork
- Arranging for keys, access, and handover
On settlement day:
- The buyer’s lender transfers the remaining funds to the seller
- The real estate agent releases the buyer’s deposit to the seller
- The title is legally transferred to the buyer
- The keys are handed over
Once complete, the buyer officially owns the property.
Can a settlement period be extended?
Yes, the settlement date can be extended, but only with mutual agreement between the buyer and seller. Extensions are often requested due to delays in finance approval or document processing, and typically require a formal written agreement.
