Settlement is the day ownership passes from the seller to you, usually 42 days after exchange in NSW. It happens electronically: your lender’s funds, your own funds and the stamp duty move through an online settlement workspace, the seller’s loan is paid off, the title is transferred to your name, and the agent releases the keys.

You do not attend; your job in the final weeks is to sign the loan documents, have your funds ready and do the final inspection.

How long does settlement take in NSW?

Usually 42 days from exchange for a NSW residential purchase, although the contract can set any date the parties agree, and off-the-plan purchases settle when the building is finished and registered. On the day itself the electronic settlement is quick, and the agent is then told to release the keys.

What happens in the weeks before settlement?

  1. Formal approval and loan documents. The lender values the property, confirms approval and issues the loan contract. Sign and return it promptly; late documents are the most common cause of a delayed settlement.
  2. Insurance. Many lenders require building insurance from exchange or settlement, with the lender noted on the policy. For a strata unit, the owners corporation insures the building and you cover contents.
  3. Funds to complete. Your conveyancer gives you a settlement statement showing the balance owing: the price less the deposit, plus adjustments for council rates, water and strata levies, plus stamp duty. Have the funds in the account nominated a few days early.
  4. Stamp duty. Transfer duty is due by settlement or three months after the contract date, whichever comes first, so on a 42-day settlement it is paid at settlement. The stamp duty calculator gives the figure; eligible first home buyers pay none up to $800,000.
  5. The final inspection. In the last few days, check the property is in the condition you bought it, that inclusions are still there and that nothing new is broken.

What happens on settlement day?

At the booked time, the settlement workspace runs the whole transaction at once:

  • Your lender releases the loan funds and your funds are drawn.
  • The seller’s mortgage is paid out and discharged.
  • Stamp duty is paid to Revenue NSW.
  • The transfer of title and your new mortgage are lodged for registration with NSW Land Registry Services.
  • The seller receives the balance.

Your conveyancer confirms that settlement is complete and the agent releases the keys, usually the same afternoon.

What can delay settlement?

  • Loan documents not returned. The lender cannot book settlement until they are signed and checked.
  • A short valuation. If the valuation came in under the price, the extra funds must be found before settlement. The low valuation guide covers the options.
  • Funds not in place. Transfers between banks can take time; move money a few days ahead.
  • The seller’s side. A seller whose own lender is slow to prepare the discharge can push settlement back.

If settlement is late, the contract sets out what happens: usually a notice to complete, and interest or costs payable by the party at fault. Your conveyancer handles these, but they are expensive, which is why the loan should be ready well before the date.

What costs are due at settlement?

Common buyer costs settled on the day
Cost Note
Balance of the price Price less the deposit already paid
Transfer duty Unless an exemption or concession applies
Rates, water and levy adjustments Your share from the settlement date
Registration fees Transfer and mortgage registration with NSW Land Registry Services
Lender fees Any settlement or application fee on your loan

Legal fees are billed by your conveyancer separately. The buying cost calculator and the article on first home buyer costs set out the full list.

What happens after settlement?

Your first repayment falls due about a month later, and the title registration completes in the following days. The guide to what happens after settlement covers setting the loan up to work: offset accounts, repayment timing and your first statement.

What should you check in the final week?

  • Loan documents signed and returned, and any conditions cleared.
  • Funds to complete in the nominated account, with transfer limits checked.
  • Building insurance in place if your lender or contract requires it.
  • Final inspection booked with the agent.
  • Utilities and internet connections arranged from settlement day.
  • Key collection agreed with the agent.

A worked example: funds to complete

The settlement figure you transfer is not simply the price less the loan. On an $800,000 purchase by a buyer who is not a first home buyer:

Funds needed on settlement day, illustrative
Item Amount
Purchase price $800,000
Less the deposit paid at exchange −$80,000
Less the loan advanced by the lender −$640,000
Balance of the price from your funds $80,000
Transfer duty, if not already paid $30,187
Adjustments for rates and levies A few hundred dollars either way
Conveyancing, registration and lender fees As quoted

For an eligible first home buyer the duty line is nil at $800,000. Your conveyancer sends a settlement statement with the exact figure a few days before; transfer the money early enough to clear any bank limits.

How do settlement adjustments work?

Council rates, water rates and strata levies are paid in advance for set periods, so the cost is shared at settlement by day. Say the annual council rates are $1,800 and the seller has paid $450 for the quarter from 1 October to 31 December. If settlement falls on 15 November, you own the home for the last 46 of the quarter’s 92 days, so you reimburse the seller about $225 at settlement. If the seller had not paid the quarter, the adjustment would run the other way.

What mistakes delay settlement?

  • Loan documents signed late. The lender cannot book settlement until they are back and every condition is met.
  • Funds sent on the day. Daily transfer limits and holds can stop money arriving in time.
  • Insurance not in place. Many lenders want building insurance from exchange or settlement; check what your contract and lender require.
  • A changed position. A new job, a new car loan or a missed repayment before settlement can reopen the approval.
  • The final inspection left to the last hour. Book it a day or two before, so any problem can be raised through your conveyancer before settlement.

Can you sell and buy on the same day?

Many upgraders settle a sale and a purchase on the same day, using the sale proceeds for the purchase. It works well when both settlements are booked together, and it is worth planning for the day one of them slips:

  • Book both settlements for the same day, with the sale scheduled first, and tell both conveyancers they are linked.
  • Know the gap: the difference between what the sale releases after your old loan is repaid and what the purchase needs.
  • Have a fallback if the sale is delayed: a short bridging loan, or a negotiated extension on the purchase. The bridging loans guide explains how lenders assess it.
  • Moving day: the keys to your old home go to the buyer the same day, so book removalists with that in mind.

Questions people ask

Do I need to attend settlement in NSW?

No. Settlement is electronic and handled by your conveyancer and lender. You sign the loan documents beforehand and collect the keys from the agent once settlement is confirmed.

What time do you get the keys on settlement day?

After the conveyancers confirm that settlement has completed, commonly in the afternoon. Agree the pick-up with the agent beforehand.

Can settlement be earlier than 42 days?

Yes, if the contract allows it or both sides agree, and if your lender has approved the loan and can book the date. A shorter period needs the loan to be fully approved early.

What if I am not ready to settle?

Speak to your conveyancer immediately. The seller can issue a notice to complete and you may have to pay their costs and interest, so ask for an extension early rather than late.

When is stamp duty paid?

By settlement or three months after the contract date, whichever comes first. On a standard 42-day settlement it is paid on the day, through the settlement workspace.

Charles Touma books settlement with the lender and works with your conveyancer so the loan funds on the day. If your settlement date is set and the loan is not finalised, call before the documents become urgent. General information only, not legal or credit advice. Sources: Revenue NSW transfer duty timing and standard NSW contract terms, checked 14 October 2026.

General information only, not credit, legal or tax advice. Your situation is assessed properly before any recommendation. Government scheme details change; figures are current at the time of writing.