What happens on settlement day?

Settlement day.  THE day you count down to when you buy or sell a property.  Whether it’s your first home in Joondalup, you’re selling an investment property in Hillarys, or perhaps upgrading to a family home in Kallaroo, there’s always an air of anticipation and excitement. 

Officially, settlement is the day the property changes hands.  Funds are transferred, ownership is updated, and the keys are finally handed over. But what actually happens on settlement day?  Who does what? And how do you know when it’s all done?  Read on to find out…

What is settlement day?

Settlement day is the final step in the property transfer process. It’s when your settlement agent (also known as a conveyancer) finalises all the legal and financial tasks required for the legal ownership to go from the seller to the buyer.

In WA, settlement is completed digitally through PEXA, Australia’s online property transfer platform, so neither the buyer nor the seller needs to attend in person. Everything is coordinated behind the scenes by your conveyancer and bank.

For buyers, settlement day marks the day the home becomes legally yours.

For sellers, it means your sale funds are received and your mortgage (if any) is paid out.

What happens before settlement day?

In the days leading up to settlement, your conveyancer carries out a long list of checks and confirmations to ensure everything is ready. This includes:

• Confirming rates and water adjustments

• Checking payout figures with the seller’s bank

• Confirming loan funds and signed documents with the buyer’s bank

• Ensuring all contract conditions have been met and that the final inspection has been completed

• Reviewing the PEXA workspace to make sure all outstanding tasks are completed

Having a proactive conveyancer on your side means that when your settlement day arrives, everything should be lined up for a smooth and punctual transfer.

What happens on settlement day?

On the day itself, your settlement agent will be making sure all of the i’s are dotted and t’s are crossed.  Final double (and triple) checks take place, including:

1. Final verification checks

Before the PEXA workspace can be signed off, your conveyancer will:

• Reconfirm all bank account details

• Reconfirm payout amounts

• Check that there is no action on the title (like a sneaky caveat being lodged)

• Check the spelling of all names and addresses on the transfer document

  
  

This step is crucial.  A small typo in an account number, a name on the transfer or a transposed figure could delay the entire settlement.

2. Coordinating with the banks

For buyers, your lender will confirm that the loan funds are ready and upload the available money into the workspace.  For sellers, your outgoing lender confirms the exact figure needed to clear your loan and prepares the discharge of mortgage document.

Nothing can proceed until all banks have signed off, so your conveyancer will monitor the workspace and stay on top of them to keep things moving.

3. PEXA completes the settlement

Once everyone is ready and signed off, the PEXA platform automatically:

• Transfers the buyer’s funds to the seller (and to the seller’s bank to pay out the mortgage)

• Pays government charges (like transfer duty) and any outstanding rates and taxes that the conveyancers have added to the workspace for payment

• Lodges the transfer documents with Landgate, to update the title to show the new registered proprietor (the buyer)

The whole process usually takes just 5-15 minutes once it begins.  And because it all happens digitally, there are no settlement rooms, no paper cheques, and no need to meet in person.

4. Your conveyancer confirms settlement has occurred

As soon as the settlement is completed on PEXA, your conveyancer will contact you to let you know it has all gone through. 

Side note: for me at North Shore Conveyancing, this is the best phone call of the entire process.

For buyers, this is when you can contact the real estate agent to arrange to pick up the keys.  For sellers, you should receive the sale funds shortly.  In most cases, this happens in a matter of minutes. However, in some cases, such as when your lender collects the full net sale proceeds, it may take 24-48 hours for the funds to be cleared and reach your account.

What you can expect on settlement day

Here’s what’s most important to know (and a question we get asked very regularly):  You don’t need to be present at settlement.  Your conveyancer manages everything for you. What you should ensure you do, though, for a smooth lead-up to settlement is:

Complete the final inspection

If the buyer is entitled to a final inspection, it should be completed within the five (5) business days leading up to settlement. The inspection should ensure that the property is in the same condition as when the buyer made their offer.

Be available by phone

Your conveyancer may need quick responses if a last-minute bank query comes up.

The final water reading is handled for you

Your conveyancer notifies local councils and water authorities of the change in ownership.  However, for utilities like gas, electricity and telephone/internet, it is your responsibility to arrange the connection (as the buyer) and disconnection (as the seller)

What if settlement is delayed?

Delays do happen occasionally, especially when the banks are busy.  PEXA will automatically roll your settlement time out in thirty-minute increments until all parties have signed off on the workspace.  Because of this, we prefer to give you a window of time (morning or afternoon) for your settlement (rather than an exact booking).

Your conveyancer will work behind the scenes to resolve any issues quickly and will let you know if settlement cannot proceed that day.

Like we said, delays do happen, but you can be confident knowing that most are resolved within a matter of hours.  But this is where having a proactive settlement agent makes a big difference.  

When do you get the keys?

This is one of the most common questions buyers ask.  You can collect the keys once settlement is completed, not before.  You can arrange the key handover with the real estate agent once you receive your conveyancer's green light.

If the seller is living in the property, though, they are entitled to remain there until 12pm the day after settlement.  For vacant properties, the keys are handed over immediately following successful settlement.

Common settlement day myths (and the truth)

Myth: “Settlement happens at the real estate office.”

Truth: Nope, these days almost all settlements in WA happen online.  A very small number still take place in person at Landgate.

Myth: “I can move my furniture in before settlement if the seller agrees.”

Truth: This is known as Prior Possession, and while we don’t encourage it, if you do take it up, it must be documented in writing; otherwise, it’s a big no.

Myth: “Settlement always happens in the afternoon.”

Truth: It can occur at any time between 9am and 3pm, depending on the bank's and conveyancer's availability.

FAQ: What happens on settlement day in WA?

Do I need to attend settlement?

No. Your conveyancer handles everything for you.

What time will settlement happen?

Usually between 11am and 3pm, but it depends on the banks and conveyancers involved.

When do I get the keys?

If the property is vacant, as soon as settlement is completed. If the seller lives there, by 12pm the day after settlement.

Can settlement be brought forward?

Absolutely, provided all parties (including banks) are ready and happy to do so.

What if something goes wrong on the day?

Your conveyancer will troubleshoot and request a short extension if needed.

Start your settlement with confidence

Settlement day should feel exciting, not stressful. With the right conveyancer managing the process, you can relax knowing everything, from the financial side to legal documents, is being handled carefully behind the scenes.

Buying or selling in WA?  North Shore Conveyancing supports clients across Kallaroo, Joondalup and the wider Perth area with a modern, secure, and personalised settlement experience. Contact Katelyn today to make your next settlement day a smooth one.