It’s settlement day. You’ve taken the day off work, the removalist is booked for the afternoon, and you’re refreshing your email waiting for someone to say the house is yours. Nobody has told you what’s actually going on, or when. We get this call more than almost any other. So here is what happens on settlement day in NSW, step by step, and what you can do to make sure yours runs on time.
You won’t be in the room, because there isn’t one
A lot of buyers picture a meeting where everyone sits around a table and signs papers. That used to be roughly how it worked. Today, settlement in NSW happens electronically through PEXA, an online platform where the conveyancers, solicitors and banks on both sides meet in a shared digital workspace.
You don’t log in and you don’t need to be anywhere. Your conveyancer or solicitor acts for you. Your lender, if you have a loan, acts for itself. The seller’s lawyer and the seller’s bank do the same on their side. Once everyone has signed off in the workspace, the money moves and the ownership changes in one go.
Most of the work is finished before the day starts
Settlement day is the last step, not the busy one. In the days leading up to it, your conveyancer will:
- check the title and confirm there’s nothing unexpected registered on it
- work out the adjustments (more on those below) and prepare a settlement statement
- confirm with your lender that the loan is ready to fund
- tell you exactly how much more money you need to have in your account, and by when
That last point is where things go wrong most often. If you’re paying part of the purchase from savings, the funds need to be cleared and available ahead of time. A transfer sent the night before can still be sitting in limbo when your conveyancer needs it.
This is also the window for your final look through the property. We’ve covered that in our pre-settlement inspection checklist, and it’s worth doing properly. Once settlement goes through, it’s much harder to raise problems.
The settlement statement shows what you actually pay
The price on the contract is not quite what changes hands. Before settlement, your conveyancer prepares a settlement statement that adjusts the price for costs the seller has already paid, or still owes, for the period after you take over.
Council rates are the main one. On the Central Coast, Central Coast Council also bills water and sewer, so those charges usually show up in the adjustments too. If the seller has paid rates for the full quarter, you reimburse them for the days you’ll own the home. If they haven’t paid, it works the other way. Buying a unit or townhouse? Strata levies are adjusted the same way, which is one more reason to read the strata report closely before you commit.
Your deposit, which has been held in trust since exchange, is released to the seller as part of the same transaction.
Here’s the order things happen on the day
Once all parties have signed in the PEXA workspace, settlement runs as a single locked process:
- Your lender’s loan funds and any money you’re contributing are paid to the seller, their lender and anyone else listed on the settlement statement.
- The seller’s existing mortgage is paid out and discharged.
- The transfer and your new mortgage are lodged for registration with NSW Land Registry Services.
- Your conveyancer gets confirmation that settlement has completed and lets you and the selling agent know.
Everything happens together or nothing happens at all. That’s the main benefit of electronic settlement: the seller can’t be paid without the title moving to you, and the reverse is also true.
The keys come from the agent, not your conveyancer
The selling agent won’t release keys until they hear that settlement has completed. In practice, your conveyancer tells the seller’s side, and the seller’s side tells the agent. Then you collect the keys from the agent’s office, or the agent arranges to meet you at the property.
This is why we tell clients not to book the removalist for first thing in the morning. If your truck is driving up the M1 from Sydney with all your furniture, a late settlement can leave it parked outside a locked house. Book it for later in the day, or the day after, and you’ll sleep better. We go through the rest of the logistics in our guide to moving from Sydney to the Central Coast.
What can delay settlement, and what happens if it does
Most settlements go through without any problems. The ones that don’t are usually held up by something small:
- the lender isn’t ready because the loan documents weren’t signed or returned in time
- your share of the funds hasn’t cleared
- the seller’s bank is slow to prepare the discharge of their mortgage
- a last-minute disagreement over adjustments or the condition of the property
If settlement can’t happen on the contract date, it is often just moved to a day or two later by agreement. If the delay drags on, the contract sets out what happens next. That can include one side issuing a notice to complete, which sets a firm deadline, and the side at fault paying interest or costs. Your conveyancer handles that conversation, but it pays to know it exists.
Insurance is the other thing to sort early. Your lender will want building insurance in place before it releases the loan, and many buyers take out cover from exchange so there’s no gap. Check with your conveyancer and insurer what suits your purchase.
Having someone in your corner from offer to keys
Settlement is mostly the conveyancer’s job, but a buyer’s agent still has a role. We chase the selling agent about keys, sort out problems the final inspection turns up, and keep everyone working to the same date. That’s part of our end-to-end buying service, which runs from the first property search right through to the day you walk in the front door.
If you’re buying on the Central Coast and want one team handling the whole purchase, including settlement day, talk to us about how we manage the purchase from start to finish.
Common questions about settlement day
Do I need to attend settlement in NSW?
No. Settlement happens online through PEXA, and your conveyancer or solicitor completes it for you. You just need to be reachable in case a question comes up, and ready to collect the keys once you hear it has gone through.
What is a settlement statement?
It’s the document your conveyancer prepares showing exactly how much changes hands at settlement. It starts with the purchase price, takes off your deposit, and adjusts for council rates, water charges and any strata levies the seller has prepaid or still owes. The final figure tells you how much you and your lender need to pay.
Can anything go wrong on settlement day?
Yes, though it’s usually minor and fixable. The most common problems are funds not cleared in time, a lender that isn’t ready, or a delay on the seller’s mortgage discharge. Most delays are short and settle a day or two later. Ask your conveyancer early what they need from you so you aren’t the cause.
How many days is settlement usually?
The settlement period is set in the contract of sale and can be negotiated before you exchange. A longer period gives more breathing room for finance and moving. A shorter one can make your offer more attractive to a seller. Agree on a date that your lender and your own plans can actually meet.
Is a 30 day settlement too short?
It can work if your finance is already formally approved and your paperwork is ready, but it leaves little room for delays. If you’re still selling another property, waiting on a valuation or moving from out of the area, a longer settlement is usually the safer choice. Talk it through with your lender before you agree to it.
When do I get the keys after settlement?
Once the selling agent gets confirmation that settlement is complete. That can be soon after it goes through or later in the day, depending on how quickly the message gets passed along. Arrange a pickup time with the agent in advance so you’re not left waiting.
