Settlement
The day ownership legally transfers, the balance is paid and you receive the keys.
Settlement is when the transaction completes. Your lender advances the loan, your conveyancer pays the balance to the seller, the title transfers, and rates and water are adjusted between the parties.
Most settlements are now electronic, completing within a scheduled window rather than requiring anyone to meet in person. Typical periods are 30 to 90 days from contract, negotiable between buyer and seller.
Do a final inspection shortly beforehand. Once settlement occurs your leverage is largely gone, and issues found afterwards become your problem rather than the vendor's.
Adjustments at settlement
If the seller has prepaid council rates to the end of the quarter, you reimburse the portion covering your ownership. These adjustments appear on the settlement statement.
The bit people get wrong
Settlement is the CGT date for stamp duty and possession, but the contract date is what counts for capital gains tax. A contract signed in late June puts the gain in that financial year regardless of an August settlement.
Common questions
What happens if settlement is delayed?
The party at fault typically pays penalty interest under the contract. Persistent delay can allow the other side to issue a notice to complete and ultimately terminate.
When do I get the keys?
Once settlement is confirmed, usually the same afternoon. The agent releases them after receiving confirmation that funds have changed hands.
Can I inspect before settlement?
Yes, most contracts allow a final inspection in the days beforehand to confirm the property is in the agreed condition and inclusions remain.