24 April 2026 | See disclaimer
It’s finally here. After years of saving your money, finding the right solicitor, and putting in offers for your dream home in a tough property market, you’ve finally secured a property. Now all you have to do is wait for the settlement day. It’s completely normal to feel a jittery excitement for this last step between you and home ownership. It’s also normal to be a bit confused about the exact legal process.
Plenty of homeowners have successfully reached settlement. According to PEXA, 544,630 new property-backed loans were settled in the 2025 financial year. [1] The settlement timeframe is also pretty consistent. Across states, the standard settlement takes around 30 days, though timeframes can increase to 45 and even 60 days. [2]
You will be going down a well-trod path that many Australians walk every day. In this article, we will walk you through what happens on settlement day, including what to prepare before settlement day, key costs you need to consider, and actions to take once you move in.
Before Settlement Day — What to Prepare
There is lots to do in the lead up to the property settlement of your new home. Here is a checklist to follow so you can prepare yourself before settlement day:
| Confirm Your Finances With Your Lender | If you’re taking out a loan, you should confirm that either your broker or lender has properly secured the loan and is putting you on a loan path with payment fees and interest rates that fit your financial circumstances. By law, lenders are required to put consumers in a contract that is in the best interest of their client as per the National Consumer Credit Protection Act 2009 [3] |
| Conduct a Pre-settlement Inspection | This final inspection is your opportunity to make sure all fixtures, fittings and appliances are present and operational; find any sources of mould or pests; and confirm that the building is structurally sound. It’s important to do it not too close to the settlement date, because if you spot any issues, there might not be enough time to fix them. [4] You can do this step with the help of a professional building inspector, as they will have the knowledge on how to identify the tell-tale signs of any structural risks within the property. |
| Review Settlement Adjustments | When you buy a new property, on top of the costs for buying the land and the valuation of the home on it, consider the government rates and applicable taxes attached, such as council rates or land tax. The solicitor or conveyancer acting on your behalf should follow up to make sure the past owner has paid all their rates accordingly. If there are outstanding rates that the seller is responsible for, these will typically be deducted from the sale proceeds at settlement to ensure the property is handed over with all such outgoings cleared. [5] |
| Pay Stamp Duty | Also known as land transfer duty, stamp duty is a government tax all people purchasing real estate assets must pay. It is calculated based on the property price and the type of home you are buying. Depending on the state, you might need to pay your stamp duty before your settlement date. [6] Make sure to check with your solicitor or conveyancer which is the case for you. |
| Arrange Home Insurance | Home Insurance isn’t just a ‘nice to have’; it’s a critical step towards securing your property. In some states, the buyer is responsible for securing home insurance before settlement. If you’re taking out a loan, your lender will likely also require the home to be insured and to have them noted as an interested party on the policy. |
| Moving or Organising Removalists | To make sure you can move into the new property as soon as you officially own it, consider arranging for removalists to move your belongings into the new home, or potentially rent your own transport if you want to do the move yourself. That said, be careful with scheduling removalists on settlement day, as there might be delays on the side of the vendor, which delay the settlement date. You might be better off scheduling movers a few days after the settlement date, just in case. [7] |
Get a head start on your insurance before settlement day by getting a combined Home and Contents Insurance Quote — Save 30%^ Online on your first year’s premium.
What Happens on Settlement Day: Step by Step
There are a few steps that have to happen during the settlement process. The buyer and seller’s legal and financial representatives are the ones who attend the settlement rather than the buyer and seller. This is what the settlement day process involves:
- On settlement day, your solicitor/conveyancer works with you to ensure the lender (the bank) transfers funds to the vendor (the person selling the house).
- The buyer and seller’s lenders and legal representatives make sure all of the settlement steps are completed and confirm signatures before the settlement is finalised.
- After settlement, the buyer’s lender will lodge the transfer documents with the state land title registry, legally transferring ownership from the vendor to you.
- Once everything is signed, keys will be supplied to you—the new owners—and you can move into your new home! [8]
Note that these days, most settlements are settled online via the online platform PEXA, though there can be exceptions.
Settlement Adjustments: What You’ll Pay on the Day
The payments you’ll be making on the day aren’t just limited to paying the balance of the purchase price and stamp duty, but also any outstanding council rates. These are known as settlement adjustments.
When you buy a property, you are responsible for other associated costs related to the property such as council and water rates, strata fees, or land taxes. As these are usually paid on a quarterly or yearly basis, you are responsible for paying the pro-rata costs from the settlement date.
This is where settlement adjustments come in. These are calculations that make sure everyone is paying their fair share in the final cost of the property. So if any rates have been paid in advance by the seller, the adjustment means that you will effectively reimburse the vendor the amount they had paid beyond the settlement date.
If you don’t understand the settlement adjustments, speak with your solicitor or conveyancer, as they can give you an idea of what to expect.
After Settlement: Your First Steps as a Homeowner
Congratulations! If you’ve made it this far, you’ve successfully gone through settlement and are now the owner of a new property. Being a home owner comes with some new responsibilities. Here is a list of things to do after you’ve collected your keys and assume legal ownership of your new home:
- Update your address - As soon as you can, make sure you update your address with your bank, your driver’s licence, the Australian Taxation Office (ATO), the Australian Electoral Commission (AEC), your car registration, your insurance and any other service or organisation that needs to have an up-to-date address.
- Connect Utilities - Contact your current utility companies, or shop around to get a new one at potentially a better price. They’ll help you connect your water, electricity, internet and gas to your new address.
- Get Insurance - If you haven’t organised your home insurance already, now could be a suitable time to do so. As a property owner, you are solely liable for any damage done to your belongings or property and having insurance in place will protect you against loss or damage from certain insured events. We recommend reviewing your sum insured to make sure that if you make a claim, it accurately covers the repair cost in case of an event covered by insurance. You can use a home cost replacement calculator tool to help you decide how much you want to insure your home and belongings for.
