What Happens at Settlement: A Step-by-Step Guide for Victorian Buyers
Settlement is the legal process by which ownership of a property is transferred from the vendor to the buyer. In Victoria, most settlements are now conducted electronically through the PEXA platform. Understanding what happens — and what can go wrong — helps buyers prepare for the big day.
The days before settlement
In the week before settlement, your conveyancer will confirm the settlement figures with your lender and the vendor's conveyancer. You will need to arrange a pre-settlement inspection to check that the property is in the same condition as when you signed the contract and that all inclusions are present.
Electronic settlement via PEXA
Victoria moved to electronic conveyancing for most property transactions. On settlement day, your conveyancer, the vendor's conveyancer, and the relevant banks all log into the PEXA workspace. Funds are transferred electronically and the title is registered with Land Use Victoria simultaneously.
What happens if settlement is delayed?
Settlement can be delayed for many reasons — a problem with the vendor's title, a delay in your lender releasing funds, or an issue identified at the pre-settlement inspection. If settlement is delayed through no fault of yours, you may be entitled to compensation under the contract. Your conveyancer will advise you on your options.
Adjustments at settlement
At settlement, adjustments are made for council rates, water rates, and owners corporation fees. These are apportioned between the vendor and buyer based on the settlement date. Your conveyancer will prepare a settlement statement showing the exact amount you need to pay.
After settlement
Once settlement is complete, you can collect the keys from the real estate agent. Your conveyancer will notify you when settlement has occurred. The title will be registered in your name within a few days. Keep all settlement documents in a safe place — you will need them when you eventually sell the property.
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