Settlement day in Queensland — what actually happens

The week before

Your solicitor prepares the settlement statement, adjusting the price for council rates, water, land tax and body corporate levies to the settlement date, and checks it against the other side's figures. The electronic workspace is created, your lender is invited into it, and the transfer documents are signed digitally.

You will be told the exact amount of your own funds required and the account to send it to. Send it early — bank transfer limits and processing cut-offs cause more settlement delays than anything else. Never act on account details received by email alone; confirm them by phone with your solicitor on a number you already have.

The pre-settlement inspection

As a buyer you are entitled to inspect the property once before settlement, usually the day before or the morning of. You are checking that the property is in the same condition as at contract date, fair wear and tear excepted, that everything included in the contract is still there, and that the fixtures and appliances still work.

• All included chattels present — dishwasher, air conditioners, blinds, remotes
• Nothing removed or damaged during the move-out
• Rubbish and belongings cleared
• Lights, taps, hot water, oven, air conditioning operating
• Any agreed repairs actually carried out

What happens on the day

At the booked settlement time, PEXA runs the exchange automatically: your lender releases the loan funds, the seller's mortgage is paid out, the balance goes to the seller, and the transfer and any new mortgage are lodged with Titles Queensland. The whole thing takes minutes once everyone is ready.

Your solicitor confirms settlement has occurred, usually within minutes. The agent is authorised to release the keys once they have that confirmation — that is why keys sometimes come mid-afternoon rather than at 9am.

If something is wrong at the inspection

Tell your solicitor immediately, before settlement — not afterwards. Options depend on the seriousness: settlement can be delayed while the issue is fixed, an amount can be held back or adjusted by agreement, or in a serious case the buyer may have a right to refuse to settle. Once you settle, your leverage is largely gone and you are left with a claim rather than a remedy.

If settlement is delayed

Delays happen — a bank is not ready, funds have not cleared, a workspace error. A short delay is usually resolved by agreement on the same day or the next. Where a party cannot settle at all, the standard REIQ contract makes time of the essence, so the party who is ready can issue a notice and, if the default continues, terminate and claim damages or forfeit the deposit. Penalty interest may run in the meantime.

After settlement

The transfer is registered, and the council, water authority and body corporate are notified of the change of ownership. Sellers should arrange final meter readings and cancel building insurance only after settlement is confirmed. Buyers should insure the property from the day the contract becomes binding, not from settlement — risk passes to the buyer well before the keys do.

Frequently asked questions