Settlement is the final step of a property sale — the day ownership and money actually change hands — but a lot happens in the lead-up that sellers don't always see directly, since most of it is handled by conveyancers.
What "settlement" actually means
Settlement is the point at which the buyer pays the remaining purchase price, the seller transfers legal title, and the buyer takes possession of the property. Everything before this — signing the contract, satisfying conditions like finance and building & pest — is preparation for this single event.
The lead-up: your conveyancer's role
In the weeks before settlement, your conveyancer handles the mechanics most sellers never see directly: preparing the settlement statement (adjusting rates, water, and other outgoings between buyer and seller), liaising with the buyer's conveyancer, and coordinating with any mortgage lenders involved on either side.
What happens on the day itself
On settlement day, the respective conveyancers (and, if applicable, banks releasing or receiving mortgage funds) exchange the settlement funds and title documents — this typically happens electronically now via PEXA (Property Exchange Australia) rather than an in-person meeting. Once your conveyancer confirms funds have been received, you're cleared to hand over keys.
When do you actually get paid?
Sale proceeds are typically available shortly after settlement is confirmed on the day — your conveyancer will tell you once funds have actually cleared, since keys and possession shouldn't be handed over before that confirmation.
What sellers need to have ready
Before settlement, make sure all keys, remotes, security codes, and any items included in the sale (fixtures agreed to stay) are ready to hand over. If the property is tenanted, any handover of tenancy documentation to the buyer needs to be arranged in line with the contract terms and the buyer's own plans for the tenancy.
What if something isn't ready on the day?
Delays do happen — a lender's funds aren't released on time, or a document issue surfaces late. Your conveyancer manages this; it's rarely something a seller needs to resolve directly, though it can push settlement back by hours or occasionally days.