Settlement Fees Explained — What Happens at Settlement (2026)
Settlement is the final step in buying a property — the day the purchase price is transferred and the title is transferred to you. Settlement involves several fees and a precise sequence of events. Most Australian residential settlements now occur electronically via the PEXA platform, meaning you don’t need to be present, but the costs and process still apply.
What Is Settlement?
Settlement is the legal completion of a property purchase. On settlement day:
- The purchase price (minus your deposit) is transferred from your lender to the vendor
- Any adjustments (rates, strata levies, etc.) are calculated and paid
- The vendor’s mortgage (if any) is discharged from the title
- Your lender registers a new mortgage on the title
- Title ownership is transferred to you
- Keys are released
In practice: Most of this happens electronically. Your conveyancer manages the process. You receive confirmation of settlement from your conveyancer, and the agent releases the keys.
What Are Settlement Fees?
Settlement fees are charges associated with the final completion of the property purchase. These come from two sources:
- Your conveyancer’s settlement service — part of their fee for managing settlement on your behalf
- PEXA (Property Exchange Australia) — the electronic settlement platform fee
Some conveyancers include settlement in their quoted professional fee; others list it separately as a disbursement.
PEXA Settlement Fee
PEXA (Property Exchange Australia) is the electronic settlement platform used for most residential property transactions in Australia.
PEXA fee for buyer: Approximately $110–$120 per transaction (as of 2026). PEXA fee for seller: Approximately $110–$120 per transaction.
The PEXA fee is a pass-through cost — your conveyancer pays it on your behalf and includes it in their disbursements.
PEXA fees are reviewed periodically. Verify current amounts with your conveyancer.
What Happens at Settlement — Step by Step
In the Lead-Up to Settlement (1–5 Business Days Before)
- Your conveyancer requests the final loan amount from your lender
- Settlement figures are calculated — purchase price, adjustments for rates/levies, deposit already paid, loan proceeds
- Your conveyancer prepares the settlement statement and confirms the final amount you need to provide
- Your conveyancer checks the title is clear (no encumbrances not accounted for)
- You conduct a final property inspection (typically 24–48 hours before settlement)
On Settlement Day
- Your conveyancer lodges documents on PEXA at the agreed settlement time
- Funds are transferred in real-time via PEXA (from your lender and any remaining funds from you)
- The vendor’s mortgage (if applicable) is discharged
- Your lender’s mortgage is registered on the title
- Title transfers to you (registered in real-time via PEXA in most states)
- Settlement is confirmed — your conveyancer notifies you
- The real estate agent releases the keys
Time frame: Electronic settlement via PEXA typically takes 15–30 minutes to process.
Settlement Adjustments — What Extra Amounts Are Involved?
At settlement, adjustments are made for outgoings paid in advance by the vendor:
| Adjustment | Typical Amount | Notes |
|---|---|---|
| Council rates | $200–$2,000 | Vendor reimburses or buyer pays proportion |
| Water rates | $50–$500 | Adjusted based on settlement date |
| Strata / body corporate levies | $200–$3,000 | For apartments — proportion of next period |
| Rental income adjustment | Varies | For tenanted investment properties |
| Land tax adjustment | Varies | If land tax applies |
Example: Council rates are $3,600 for the year (July 1 – June 30). Vendor pays them on July 1. Settlement occurs on April 15. The buyer reimburses the vendor for the 76 days remaining in the rate period (April 15 – June 30): 76 × ($3,600 / 365) ≈ $750 credit to vendor.
Your conveyancer calculates all adjustments and provides a settlement statement showing the exact amount to transfer.
What Happens If Settlement Doesn’t Proceed on Time?
Occasionally, settlement is delayed due to:
- Bank/lender delays in releasing funds
- Missing documents
- Last-minute title issues
- Party not ready to settle
Consequences of delayed settlement:
In most states, if you (as buyer) delay settlement without the vendor’s agreement:
- Penalty interest accrues on the balance (typically at a default rate of 10–12% p.a.)
- Vendor may issue a Notice to Complete, and if you still fail to settle, may terminate the contract and keep your deposit
Settlement delays are stressful and potentially expensive. Ensure your finances are confirmed and documents ready well before settlement day.
Do I Need to Attend Settlement?
No — in states using electronic settlement via PEXA, you do not attend. Your conveyancer acts as your representative.
In some remote areas or for certain transaction types, manual (in-person) settlement may still occur — your conveyancer would advise if this applies.
The Final Property Inspection
Before settlement, you are entitled to a final inspection of the property — typically conducted 1–2 days before. This verifies:
- The property is in the same condition as at purchase
- Agreed inclusions (whitegoods, curtains, etc.) are present
- The vendor has vacated and cleaned the property
If something is wrong at the final inspection, contact your conveyancer immediately — this needs to be resolved before settlement proceeds.
Summary of All Settlement-Related Costs
| Cost | Typical Amount | Who Pays |
|---|---|---|
| PEXA fee (buyer) | ~$115 | Buyer |
| Settlement preparation (conveyancer) | Included in conveyancing fee | Buyer |
| Mortgage registration | ~$100–$250 | Buyer |
| Title transfer registration | ~$100–$250 | Buyer |
| Stamp duty (if not paid earlier) | State-dependent | Buyer |
| Council/water rate adjustments | $200–$2,000 | Buyer reimburses vendor proportion |
| Strata levy adjustment | $200–$3,000 | Buyer reimburses vendor proportion |
Frequently Asked Questions
What time does settlement usually happen? Electronic PEXA settlements are typically scheduled for a specific time — often 11am–2pm on the settlement day. Your conveyancer manages the timing.
What if my loan isn’t approved by settlement? If you have a finance condition in your contract, you may be able to exit. If settlement is unconditional and your finance falls through, you may be in breach of contract. Always have confirmed finance approval before waiving a finance condition.
When do I get the keys? After settlement is confirmed by your conveyancer, the real estate agent releases the keys — typically the same afternoon.
Related Guides
- Conveyancing Costs Australia
- Total Cost of Buying a House in Australia
- Hidden Costs of Buying a Home
- Discharge Fees Explained
- Costs and Fees Hub
This article provides general information about settlement processes and fees. Settlement costs vary by state, property type and conveyancer. For advice tailored to your situation, speak with a licensed conveyancer, solicitor or mortgage broker. Find one through MoneySmart.