The property settlement process is the stretch between signing the contract and getting the keys, and it ends on the day the balance is paid and the title moves into your name. In NSW the standard contract prints a default of 42 days. Consumer Affairs Victoria and WA's Consumer Protection both say settlement is usually 30 to 90 days, and in Queensland it is usually 30.
Settlement day itself is an anticlimax. Your conveyancer and the seller's sign off in an electronic workspace, the money and the title swap in one automated sequence, and you mostly wait for a phone call. The work that decides whether it goes smoothly happens in the weeks before: deposit, finance, searches, adjustments and duty. Here is that timeline, what each state does differently, a worked settlement statement, and what a delay costs.
How long is settlement? Typical periods by state
| State | Typical or default settlement period | What sets it |
|---|---|---|
| NSW | 42 days | Printed as the default "date for completion" in the 2022 standard contract, changeable by agreement |
| VIC | Usually 30 to 90 days | Set by the seller in the contract and negotiable, per Consumer Affairs Victoria |
| QLD | Usually 30 days | Can be longer or shorter by agreement, per the Queensland Law Handbook |
| WA | Usually 30 to 90 days | Set in the contract, per Consumer Protection WA |
In South Australia, Tasmania, the ACT and the Northern Territory the date is simply whatever your contract says, so ask for the period you need before you sign. If you need formal loan approval or have a home to sell, a short settlement is a risk you are agreeing to, not a favour.
The property settlement process, step by step
1. Signing or exchange, and the deposit
Under the NSW standard contract the deposit is 10% of the price unless the contract says otherwise, and it is due when the contract is made, with that time "essential". In WA no deposit is legally required, and Consumer Protection says it is generally no more than 10% and often considerably less. At auction, Moneysmart says to expect a deposit, typically 10%, on the day.
A deposit bond (a guarantee from an issuer in place of cash) only works if the seller accepts it. The NSW contract makes acceptance a box the seller ticks. Victoria's works the same way, and the bond must expire at least 45 days after the settlement date.
Sort insurance now, not later. In Queensland the property is at your risk from 5pm on the first business day after the contract date. Victoria's standard contract leaves the risk with the seller until settlement, but lenders still want building insurance arranged before they approve. You will also be asked for ID, since conveyancers and agents now run AML identity checks on buyers.
2. Cooling-off and inspections
Most states give a short cooling-off period on private sales. There is none at auction, and none at all in WA. Our cooling-off guide sets out the rules state by state, and the building and pest inspection guide covers what to get done inside that window.
3. Finance becomes formal
Send the signed contract to your lender or broker the same day. Your pre-approval only becomes a formal approval after the lender values the property and rechecks your file, which is where purchases come unstuck, as our guide to home loan pre-approval explains. Once approved, sign and return the loan documents promptly. The bank has its own lead time to book settlement.
4. Searches, requisitions and the vendor's paperwork
Your conveyancer checks the title, council and water certificates and, for a unit, the strata records, and in NSW serves requisitions on title, formal questions the seller must answer. The Queensland Law Handbook warns buyers to be reluctant to agree to a shorter settlement unless confident the search results will arrive in time.
One item buyers rarely hear about until it goes wrong: the seller's tax clearance certificate. For contracts signed from 1 January 2025, an Australian resident seller must hand you an ATO clearance certificate at or before settlement. Without one, you must withhold 15% of the price and pay it to the ATO. Your conveyancer handles it, but a missing certificate on the day changes the money that moves.
5. Adjustments: rates, water, strata levies and land tax
Outgoings are split at settlement. Under the NSW contract the seller is liable for rates, water, land tax, levies and other periodic outgoings up to and including the adjustment date. Your side provides adjustment figures at least two business days before completion, and the seller confirms them at least one business day before. Victoria's standard contract works the same way: the seller pays up to and including settlement day, and you pay from the day after.
Land tax is where the states split:
- NSW: adjusted only if the contract says land tax is adjustable, and surcharge land tax is never adjusted.
- VIC: banned. Since 1 January 2024 a contract cannot make the buyer pay any of the seller's land tax on sales under $10 million (a threshold indexed to CPI).
- QLD: the REIQ contracts used from 1 August 2025 let the seller choose how, or whether, land tax is adjusted.
If you are buying an investment property, our land tax guide covers what you will owe once it is yours.
6. Stamp duty
| State | When transfer duty must be paid |
|---|---|
| NSW | By the earlier of settlement or 3 months after signing the contract |
| VIC | Before the transfer can be registered, usually at settlement; penalty tax and interest if not paid within 30 days of settlement |
| QLD | Documents lodged within 30 days of the liability arising, usually when the contract is signed or becomes unconditional |
| WA | Documents lodged for assessment within 2 months of the liability arising |
NSW off-the-plan buyers may be able to defer duty by a further 12 months. Your conveyancer usually pays duty as part of settlement, so it needs to be in the funds you provide. Run the stamp duty calculator early, because the number rarely gets smaller.
7. Pre-settlement inspection
The NSW standard contract allows one inspection in the three days before completion. Victoria's allows inspection at any reasonable time during the seven days up to and including settlement day, and the seller must hand the property over in the same condition as on the day of sale, fair wear and tear aside. Check that the inclusions are still there, appliances work, and nothing has been damaged. Raise problems through your conveyancer before settlement, not after.
8. Settlement day on PEXA
Under the NSW contract, settlement is electronic by default. In a PEXA workspace both conveyancers and the lenders enter a financial settlement schedule, which must balance before it can proceed. Within the hour before settlement PEXA runs a title activity check. The workspace then locks and funds are reserved, the transfer is lodged with the land registry, and money is exchanged between the banks and paid out. If a workspace is not ready on time, PEXA reschedules it to the next available slot that day, until 5pm AEST or AEDT (Queensland and the Northern Territory excepted).
Your part is getting your contribution into the trust account or PEXA source account on time, and verifying the bank details by phone before you send it. Settlement week is when payment redirection scams strike, and our guide to settlement payment scams sets out the call-back protocol.
9. Keys
Once settlement completes, Consumer Affairs Victoria says you can collect the keys from the agent and take possession. The agent typically waits for the seller's side to confirm settlement has gone through.
Worked example: a settlement statement with adjustments
The figures are hypothetical. Say you buy an $850,000 strata unit in NSW on Tuesday 3 November 2026. The contract keeps the 42-day default, so completion falls on Tuesday 15 December. You paid a 10% deposit of $85,000 on exchange. The seller has already paid the October to December quarter (1 October to 31 December, 92 days) for council rates, strata levies and water service charges, so you reimburse the 16 days from 16 December.
| Item | Amount |
|---|---|
| Purchase price | $850,000.00 |
| Less deposit paid on exchange | minus $85,000.00 |
| Plus council rates ($480 x 16/92) | $83.48 |
| Plus strata levies ($1,350 x 16/92) | $234.78 |
| Plus water service charges ($160 x 16/92) | $27.83 |
| Balance payable to the seller | $765,346.09 |
| Less your loan advance | minus $680,000.00 |
| Your own funds at settlement | $85,346.09 |
On top of that comes transfer duty, registration fees and your conveyancer's bill, which appear on your own statement rather than the seller's. The adjustments are small, but the timing is not: a one-week slip moves every line.
What happens if settlement is delayed
In NSW, if either side does not complete by the date, the other can serve a notice to complete. The standard form does not fix the period, but at least 14 days is the accepted norm. Late completion interest comes from the special conditions, so read that clause before you sign. If a buyer still does not complete, the seller can terminate and keep a deposit of up to 10% of the price.
In Victoria, the standard contract charges interest at 2% above the rate fixed under the Penalty Interest Rates Act 1983, and that rate has been 10% since 1 February 2017, so 12% a year on an unamended contract. Five days late on a $765,346 balance is about $1,258. The offended party serves a default notice giving 14 days to fix the default, and the contract can end if it is not remedied. Late settlement interest also counts towards the price for duty: if it reaches $5,000 or more, the State Revenue Office must be told within 30 days of settlement and more duty may be payable.
In WA, Consumer Protection warns a buyer who misses the date may have to pay penalty fees to the seller.
Delays run both ways. If the seller is late, the same notices are available to you. Lining up formal approval to the contract date is the single best defence, and a mortgage broker can tell you how long your lender needs to book settlement.
Settlement day checklist
- Confirm the settlement date and time with your conveyancer and lender a week out.
- Book the pre-settlement inspection inside your contract's window.
- Check the lender has your loan documents and a certificate of insurance.
- Get the final settlement figures, including adjustments, duty and fees.
- Verify the trust account or PEXA source account details by phone, then transfer your funds a day or two early.
- Arrange electricity, gas and internet from settlement day.
- Keep your phone on and wait for your conveyancer's confirmation.
- Collect the keys from the agent once settlement is confirmed.
Frequently asked questions
What happens on settlement day?
Your conveyancer, the seller's representative and both lenders complete an electronic workspace, usually on PEXA. At the scheduled time the workspace locks, the transfer is lodged with the land registry and the funds are exchanged and paid out. You usually just wait for a call, then collect the keys from the agent.
How long is settlement in NSW, VIC and QLD?
The NSW standard contract defaults to 42 days after the contract date. Victoria is usually 30 to 90 days and Queensland usually 30 days. Every period can be changed by agreement, so negotiate before signing.
When do I get the keys after settlement?
Once settlement completes and the selling agent hears it has gone through. Consumer Affairs Victoria says you can then collect the keys and take possession.
Do I pay stamp duty before or at settlement?
Usually at settlement, through your conveyancer. In NSW it is due by the earlier of settlement or three months after the contract. In Victoria it is normally paid at settlement, with penalties if it is not paid within 30 days after.
What happens if I can't settle on time?
The seller can serve a notice to complete in NSW or a default notice in Victoria, usually giving 14 days. You may owe interest at the contract's rate, and if you still do not settle the seller can end the contract and keep the deposit.
Before you sign the contract
Settlement goes wrong when the date suits the seller and nobody checked it against the buyer's finance, duty and searches. Before you sign, agree a period your lender can meet, read the late completion clause, and find out what is adjusted. This is general information, not legal or financial advice, so have a conveyancer or solicitor review your contract.
Sources
- Law Society of NSW and REINSW, "Contract for the sale and purchase of land". 2022 edition.
- Law Institute of Victoria and REIV, "Contract of Sale of Land". January 2024.
- Consumer Affairs Victoria, "Settlement" and "Property settlement". Updated 8 April 2026.
- Consumer Protection WA, "Property settlement" and "Buying property by private sale". Updated 25 November 2024.
- Caxton Legal Centre, "Queensland Law Handbook: Buying, selling and building a home". March 2022.
- Revenue NSW, "Who pays transfer duty and when". Updated 27 May 2026.
- State Revenue Office Victoria, "Understanding land transfer (stamp) duty". Updated 10 September 2026; and "Duty payable on late settlement interest". Updated 30 July 2026.
- Queensland Revenue Office, "Lodging and paying transfer duty". Accessed 6 October 2026.
- Government of Western Australia, "About transfer duty". Updated 2 June 2026.
- ATO, "Australian residents and clearance certificates". Updated 12 August 2026.
- PEXA, "Service Charter". August 2025.
- Supreme Court of Victoria, "Penalty interest rates". Accessed 6 October 2026.
- K&L Gates, "Victorian Vendors to Pick up the Land Tax Bill". 18 December 2023; and REIQ, "New GST and land tax options in REIQ contracts". 30 June 2025.
- Moneysmart, "Buying a house". Accessed 6 October 2026.
