NSW Property Settlement – What Happens After Contracts Exchange

Key Takeaways

• Property settlement is when legal ownership officially passes from seller to buyer.
• The process typically takes six weeks after contracts exchange in NSW.
• Buyers should be aware of cooling-off periods, special conditions, and lender requirements.
• Pre-settlement checks, final inspections, and adjustments are essential to avoid unexpected costs.
• Having an experienced legal team ensures settlement runs smoothly and minimises risks

When buying property in New South Wales, the exchange of contracts is an exciting milestone. For both buyers and sellers, the real work begins in the weeks leading up to property settlement. This is when ownership legally transfers, finances are finalised, and obligations under the contract come to life.

At & Legal, we often find that clients are uncertain about what actually happens after exchange. Understanding the process not only reduces stress but also helps avoid costly mistakes. Our team of property and commercial lawyers guide you through every step.

Precision and care. If you are buying or selling property in NSW, speak with our Commercial Law team today to ensure your property settlement is managed by an experienced legal team.

What Is Property Settlement?

Property settlement is the formal process where legal ownership passes from seller to buyer. In NSW, this usually happens six weeks after contracts exchange, unless the contract specifies otherwise.

On settlement day, solicitors, banks, and conveyancers use the electronic PEXA platform to:

• Transfer the purchase price (less deposit)
• Register the new owner on title
• Discharge existing mortgages
• Adjust rates, taxes, and levies

At & Legal, we ensure all financial and legal requirements are met in advance so settlement runs smoothly on the day.

Cooling-Off Period and Special Conditions

For most private treaty sales, a five-day cooling-off period applies. During this time, buyers can withdraw but may forfeit 0.25% of the purchase price. No such right exists at auction.

Many contracts also include special conditions, such as:

• Subject to finance approval
• Subject to sale of another property
• Specific repairs or inclusions

At & Legal, we review these conditions at the exchange stage and track them through to settlement so our clients remain protected.

Pre-Settlement Checks and Searches

Between exchange and settlement, several legal checks must be completed. At & Legal, we handle:

• Title searches to confirm the vendor can legally transfer the property
• Council, water, and strata enquiries to ensure rates and levies are up to date
• Land tax checks (where applicable)
• Bankruptcy searches against the vendor

We also prepare an adjustments statement so that outgoings (such as council rates or strata levies) are fairly split between buyer and seller up to settlement. Without this, buyers risk paying the seller’s arrears.

Finance and Lender Requirements

Most buyers rely on bank finance to complete settlement. Lenders typically:

• Undertake a final valuation of the property
• Issue loan documents
• Confirm funds are ready for settlement

If the lender’s valuation is lower than the purchase price, buyers may need to contribute extra funds. At & Legal, we work closely with lenders and mortgage brokers to anticipate issues early and prevent last-minute funding shortfalls.

Final Inspection Before Settlement

In the week leading up to settlement, the buyer has the right to a final inspection. This ensures:

• The property is in the same condition as at exchange
• All agreed inclusions (appliances, fixtures, or furniture) remain

Where problems are found, & Legal negotiates fast resolutions, whether through urgent repairs, adjustments to the purchase price, or holding back funds until the issue is fixed.

What Happens on Settlement Day?

On settlement day, representatives from both sides meet electronically via PEXA. At & Legal, we coordinate with your bank, the vendor’s solicitor, and other parties to:

• Pay the balance of purchase funds
• Confirm all adjustments are correct
• Lodge the transfer of title with NSW Land Registry Services
• Ensure any existing mortgage is discharged

Once complete, you become the legal owner and can usually collect the keys from the agent.

When Things Go Wrong

Despite everyone’s best efforts, delays and disputes sometimes occur. Common causes include:

• Finance not being ready
• Title issues or outstanding encumbrances
• Disagreements over property condition

Contracts often impose default interest for late settlement. In extreme cases, a party may gain the right to terminate the contract. At & Legal, we act quickly to resolve disputes and protect our clients from harsh contractual consequences.

Why Choose & Legal for Your Property Settlement

Property settlement may seem straightforward, but behind the scenes it is a highly technical process with strict timeframes. At & Legal, our role is to:

• Protect your legal and financial interests at every stage
• Manage communication with banks, brokers, and agents
• Handle complex adjustments and searches
• Prevent last-minute surprises that can derail settlement

Our property law and conveyancing team combines decades of experience in property transactions with a client-focused approach. Whether you are a first-home buyer or a seasoned investor, we provide clear advice and proactive solutions tailored to your circumstances.

To better tailor services to individual clients needs, we also offer three clear conveyancing service packages so you can select the level of support that best matches your transaction. These packages ensure transparent pricing and peace of mind, no matter how simple or complex your property purchase may be.

Final Thoughts

While the exchange of contracts is an exciting step, the transaction is not truly complete until property settlement takes place. With so much at stake, having a dedicated legal team by your side makes all the difference.

At & Legal, we don’t just tick boxes. We protect your investment, minimise risks, and give you confidence that settlement will be handled with precision and care. If you are buying or selling property in NSW, speak with our property law and conveyancing team today to ensure your property settlement is managed by experts.

Frequently Asked Questions

How long does property settlement take in NSW?

The standard settlement period is 42 days (around six weeks) unless the contract specifies a different timeframe. However, the seller and buyer can agree to a longer or shorter settlement period

Can you delay settlement in NSW?

Settlement dates can sometimes be extended if both parties agree. However, contracts often impose penalties or interest if settlement is delayed.

What happens if my finance isn’t ready by settlement?

If finance is not ready, buyers risk defaulting on the contract. Our team works with lenders to avoid this situation and, where necessary, negotiate extensions.

Do I need a lawyer for property settlement?

Yes. Property settlement involves complex legal and financial steps. Having an experienced lawyer ensures your interests are protected and reduces the risk of costly mistakes.