Understanding the settlement process when buying a home - NAB

Settlement at a glance

  • What settlement is: The legal process where ownership of a property transfers from the seller to the buyer, and the remaining purchase price is paid.
  • When it happens: In Australia, settlement usually takes place 30 to 90 days after contracts are signed or exchanged, depending on what’s written in the contract.
  • Who manages it: Your lender and solicitor or conveyancer handle the legal and financial steps, so you generally don’t need to attend.
  • What it means for you: Once settlement is complete, you can collect the keys and take possession of your new home.

What is settlement?

Settlement is the final stage of buying a home. It’s when the seller is paid the balance of the purchase price and legal ownership of the property is transferred into your name.

Settlement begins after the contract of sale is signed by both parties and runs for the period agreed in the contract (typically 30 to 90 days). You don’t usually need to attend settlement in person. Your conveyancer or solicitor will take care of it for you.

Types of settlement you may hear about

Standard settlement:  A standard settlement is the most common type when buying a home. Settlement occurs on the agreed date in the contract, and ownership transfers once the purchase price is paid.

Simultaneous settlement: when you sell one property and buy another on the same day, using the sale proceeds to fund the purchase.

Refinance settlement: when an existing home loan is paid out and replaced with a new one (generally a simpler process than buying a property).

Who does what at settlement?

Your lender

  • Provides the funds to complete the purchase.
  • Registers a mortgage over the property.
  • Confirms settlement figures and timing with your conveyancer.
  • Releases funds at settlement once all conditions are met.

Your solicitor or conveyancer

  • Checks the seller’s mortgage is discharged.
  • Ensures there are no outstanding title issues or third-party claims.
  • Confirms all contract conditions have been met.
  • Registers the transfer of ownership and mortgage.
  • Prepares settlement adjustments for rates and levies.

You (the buyer)

  • Ensure the contract is correctly signed and dated.
  • Have funds available for costs such as stamp duty or land transfer duty, and any other applicable fees.
  • Arrange building and contents insurance from the purchase date.
  • Complete a final inspection before settlement.

What happens on settlement day in Australia?

On settlement day, your solicitor or conveyancer coordinates with your lender and the seller’s representatives to finalise the transaction.

In practical terms, this means:

  • The purchase funds are transferred to the seller.
  • The seller’s mortgage (if any) is removed from the title.
  • Your mortgage is registered.
  • Legal ownership of the property is transferred to you.

Once settlement is confirmed as complete, the agent is authorised to release the keys.

Settlement adjustments: what are they?

Settlement adjustments split property related charges between buyer and seller. These may include council rates, water rates, land tax and body corporate or strata levies. The seller pays these costs up to settlement day, and you take over from that point onwards. Adjustments are calculated, so each party only pays for the time they own the property.

Preparing for settlement day

Before settlement day

Here’s what you can do to ensure the settlement goes smoothly.

  • Engage a solicitor or conveyancer early.
  • Check your contract includes the correct settlement date.
  • Make sure your loan documents are signed and returned on time.
  • Organise funds needed to complete the purchase.
  • Arrange insurance from the purchase date.
  • Book and complete your final inspection.

Final inspection

The final inspection usually takes place within the week leading to settlement. It’s your chance to confirm that the property is in the same condition as when you agreed to buy it.

Check that:

  • appliances, heating, cooling and hot water are working,
  • fixtures, fittings and surfaces haven’t been damaged,
  • any agreed repairs have been completed, and
  • keys, garage remotes and access devices are provided.

Buying a new home?

If the property is newly built, confirm that all work is finished and appliances are installed and operational. You may also choose to arrange a defects inspection for extra peace of mind.

What can delay settlement?

Settlement delays can can occur due to outstanding contract conditions, delays in loan approval, missing paperwork or title issues. Your conveyancer will usually manage these issues and keep you informed if timelines change.

What happens after settlement

After settlement:

  1. Your home loan is drawn down and repayments begin.
  2. Land transfer duty or stamp duty must be paid (timing varies by state or territory).
  3. Responsibility for ongoing costs, rates and charges transfers to you. 
  4. You collect the keys and move in.

Support when preparing for home ownership

We know that the home loan process can be daunting. Whether you’re buying your first home or upgrading, you don’t have to manage the process alone. We can support you via branches, phone banking and online applications.

Ready to purchase your home?

Talk to our home loan experts today.

Talk to an expert

Explore property and home buying guides

What happens if settlement is delayed?

Learn what happens when banks delay settlement and how to avoid penalties with simple steps to keep your property transaction on track.

Seven tips to help pay your home loan faster

Changing how you make your home loan repayments could have a big impact.

Understanding bank valuations on your property

A bank valuation helps determine how much we can lend you. Learn more.

Related products and services

Home loan offers

Check out our current home loan offers and special discounts.

Home loans

Home loans for every need with tools, calculators and guides to help you choose.

Refinance Settlement Process

A guide to the settlement process when refinancing your home loan.

Contact us for home loan related queries

This is how you can get in touch.

Start a conversation with a banker

  1. Log into either NAB Internet Banking or the NAB app.
  2. Tap on the message icon.
  3. Type ‘speak to a person’ in the conversation window.

Call us

Speak to a home loan expert about a new or existing home loan.

Monday to Friday, 8:00am to 7:00pm (AEST/AEDT)
Saturday to Sunday, 9:00am to 6:00pm (AEST/AEDT)

13 78 79

Book an appointment

Make an appointment to see us at your nearest branch, ask a mobile banker to come to you or ask us to call you back.

Talk to an expert

Terms and Conditions

The information contained in this article is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, NAB recommends that you consider whether it is appropriate for your circumstances. NAB recommends that you seek independent legal, financial and taxation advice before acting on any information in this article.