In NSW, settlement usually happens about 6 weeks (42 days) after contracts are exchanged, although the parties can agree on a shorter or longer period. On the day, the buyer's funds are paid, the seller's mortgage is discharged and ownership is transferred electronically through PEXA, after which the keys are released.
Settlement is the moment the property actually changes hands. Exchange is when you become legally committed; settlement is when you pay the balance and become the owner.
A common mistake is thinking the settlement date can be moved easily if something goes wrong. It can only be moved if the other side agrees, and a delay can cost you interest and, in the worst case, your deposit.
Exchange vs settlement
| Exchange | Settlement | |
|---|---|---|
| What happens | Both parties sign and the contract becomes binding | The balance is paid and ownership transfers |
| Money | The buyer pays the deposit, usually 10% | The buyer pays the rest, usually through their lender |
| Can you change your mind? | Only within the cooling off period, if there is one | No |
| Keys | No | Yes, once settlement is confirmed |
| Typical timing | Day 0 | Around day 42 |
How long is the settlement period in NSW?
The settlement period is whatever the contract says. Most standard residential contracts in NSW use 42 days. Some sales use 30, 60 or 90 days, especially where the seller needs time to buy elsewhere or the buyer is waiting on finance.
Off the plan purchases are different. Settlement usually happens a set number of days after the buyer is notified that the strata plan or subdivision is registered, which may be months or years after exchange.
If you need a particular settlement date, negotiate it before exchange. Changing it later needs both sides to agree.
The settlement timeline
| When | Buyer | Seller |
|---|---|---|
| Exchange | Pays the deposit, cooling off starts if it applies | Contract becomes binding |
| Weeks 1 to 2 | Confirms unconditional finance, arranges insurance from exchange | Asks the lender for the mortgage discharge |
| Weeks 2 to 4 | Lender books valuation and prepares loan documents | Arranges to move out or sort out tenants |
| Weeks 4 to 5 | Signs loan documents, pays transfer duty if not paid already | Checks the discharge is on track |
| Final week | Pre-settlement inspection, final figures confirmed | Final figures confirmed |
| Settlement day | Funds paid, title transferred | Mortgage discharged, balance received |
What happens on settlement day
NSW settlements are completed electronically through PEXA. There is no meeting and no cheques. Before the day, the conveyancers for the buyer and seller, and both lenders, join a shared electronic workspace and agree the figures.
At the agreed time:
- The buyer's lender releases the loan funds and the buyer's own contribution
- The seller's lender is paid out and the mortgage is discharged
- The transfer of ownership is lodged with NSW Land Registry Services
- The balance is paid to the seller, and any agreed fees are paid from the funds
- The conveyancers confirm settlement, and the agent releases the keys
It often takes only minutes once it starts. Most settlements happen during business hours, and the keys are usually available the same afternoon.
Adjustments: why the final figure is not the price
The amount you pay or receive at settlement is adjusted for costs that one side has already paid, or will pay, for a period the other side owns the property.
| Adjustment | How it works |
|---|---|
| Council rates | If the seller has paid rates beyond settlement, the buyer reimburses them for those days |
| Water rates | Fixed charges are adjusted the same way, and usage may be read or estimated |
| Strata levies | Levies are split at the settlement date, with special levies depending on the contract |
| Rent | If the property is tenanted, rent is split at the settlement date and the bond is transferred |
| Land tax | In some cases land tax is adjusted, depending on the contract terms |
Your conveyancer prepares or checks the settlement statement so you know the exact figure before the day.
Before settlement: the buyer's checklist
- Finance is unconditionally approved, not just pre-approved. See our guide to finance approval
- Building insurance is in place from exchange (or from settlement, if the contract puts the risk on the seller until then)
- Transfer duty is paid or ready to be paid. See Revenue NSW transfer duty
- Loan documents are signed and returned to your lender
- Your own contribution is in the right account
- Pre-settlement inspection booked in the final week
- Utilities arranged from the settlement date
Before settlement: the seller's checklist
- Mortgage discharge requested early, ideally within days of exchange. Lenders can take weeks
- Inclusions left as listed in the contract
- The property left in the condition the contract requires
- Keys and remotes ready for the agent
- Tenants and bonds sorted, if the property is tenanted
What if settlement is late?
Delays happen: a lender is slow, a discharge is not ready, or a buyer's finance falls through. What happens next depends on who is late and what the contract says.
If the buyer is late, the standard NSW contract usually requires the buyer to pay the seller interest for each day of delay. If the delay continues, the seller can serve a Notice to Complete.
If the seller is late, the buyer can also serve a Notice to Complete, and may be able to claim some costs caused by the delay.
What is a Notice to Complete?
A Notice to Complete is a formal notice that makes time essential. It gives the other side a set period to settle, commonly 14 days. If they do not settle by then, the party who served it may be able to end the contract.
If a buyer fails to settle after a valid Notice to Complete, the seller can usually end the contract, keep the deposit of up to 10%, and claim further losses. That is why finance needs to be fully approved, not just pre-approved, before you commit.
If you receive a Notice to Complete, call your conveyancer straight away. There may still be time to settle or negotiate.
Can the settlement date be changed?
Only if both sides agree in writing. You can ask, and many sellers or buyers will agree to a short extension, sometimes in return for interest or other terms. But there is no automatic right to move the date.
If you think you will need flexibility, ask for it before exchange. It is much easier to negotiate a longer settlement period at the start than an extension later.
Buying and selling at the same time
If you are selling one home to buy another, try to match the two settlement dates, or settle the sale first. Lining them up through PEXA on the same day is common, but it means any delay on one side affects the other. Talk to us before you sign either contract.
Common questions
FAQs
How long does settlement take in NSW?
Usually 42 days after exchange, though it can be shorter or longer by agreement. Off the plan settlements happen after the plan is registered.
What time does settlement happen?
It is booked for an agreed time during business hours. Once it starts, it usually completes within minutes.
When do I get the keys?
Once settlement is confirmed, the agent releases the keys, usually the same day.
Do I need to attend settlement?
No. NSW settlements happen electronically through PEXA, and your conveyancer handles it.
What happens if my finance is not ready on settlement day?
You may have to pay the seller interest for the delay, and the seller may serve a Notice to Complete. Tell your conveyancer as soon as you know there is a problem.
Can I do a final inspection before settlement?
Yes. Most contracts allow a pre-settlement inspection in the final week. See our pre-settlement inspection checklist.
Sources: NSW Land Registry Services · Revenue NSW: transfer duty · PEXA · Law Society of NSW and REINSW Contract for the Sale and Purchase of Land (current edition)
City Peak Conveyancing acts on NSW property only. This page is general information, not advice about your circumstances.