Seller’s guide · NSW
Settlement day for sellers in NSW: what to expect
Selling a property in NSW? Learn what happens on settlement day, how electronic settlement works, what you need to do beforehand and how to avoid delays.
Updated October 2026 to reflect current law.
Settlement day is the day your sale is finalised. The buyer pays the balance of the price, the property is transferred into their name and you hand over the keys. In NSW, almost every settlement now happens online.
If you are selling for the first time, it is normal to feel unsure about what happens and what you need to do. This guide walks you through settlement day step by step, so you know what to expect and how to avoid last minute problems.
Key takeaways
- When: on the completion date in your contract. In the standard NSW contract this is the 42nd day after the contract date, unless you agree on a different date.
- Where: online, through an electronic settlement platform such as PEXA or Sympli. You do not need to attend.
- What happens: the buyer pays the balance, your mortgage is paid out, and ownership passes to the buyer.
- Your money: the sale proceeds are usually paid into your nominated bank account on the same day.
- Keys: your agent releases the keys to the buyer once settlement is confirmed.
- Must do: get an ATO clearance certificate before settlement, or the buyer must hold back 15% of the price.
On this page
What is settlement day?
Settlement (also called completion) is the last step in selling a property. It is the moment the buyer pays the full price and you transfer legal ownership to them.
Before settlement, the property is still yours. After settlement, the buyer becomes the registered owner and is entitled to vacant possession. This means the home must be empty of people and your belongings, unless the contract says otherwise (for example, if a tenant is staying on).
When does settlement happen in NSW?
The settlement date is set out in your contract for sale. Under the standard NSW contract, settlement is due on the 42nd day after the contract date. You and the buyer can agree to a shorter or longer period, such as 30, 60 or 90 days.
A longer settlement can suit you if you need time to buy your next home. A shorter one can suit you if you have already moved out. Talk to us before you sign so the date works for you.
If the buyer exchanged with a cooling-off period, the sale only becomes certain once that period ends. Read more in our guide to the cooling-off period in NSW.
What happens on settlement day?
In NSW, settlements take place electronically under the Electronic Conveyancing National Law. The lawyers, banks and conveyancers involved all join an online “workspace” on a platform such as PEXA or Sympli. Here is how the day usually runs.
- The workspace is prepared. In the days before settlement, your lawyer and the buyer’s lawyer enter the settlement figures, the transfer and the payment details. Your lender (if you have a mortgage) and the buyer’s lender join too.
- Everyone signs digitally. All parties check the figures and sign the documents electronically before the settlement time.
- Settlement takes place. At the agreed time, the platform swaps the money and the documents at the same moment. The buyer’s funds are paid out, your mortgage is discharged and your sale proceeds are paid to your account.
- The title is transferred. The transfer and the discharge of your mortgage are lodged electronically with NSW Land Registry Services. The buyer then becomes the registered owner.
- The keys are handed over. Your lawyer tells the agent that settlement is complete. The agent then gives the keys to the buyer.
Most of this happens without you. Your main job is to make sure everything is ready beforehand.
Paying out your mortgage
If you have a home loan, your lender must be paid out at settlement. You usually need to sign a discharge authority (a form that tells your lender you are selling) at least 2 to 3 weeks before settlement. Lenders can be slow, so do this as soon as the contract is exchanged.
Ask your lender for an estimate of the payout figure. In most sales the price is more than the loan. If it is not, you will need to have the shortfall ready in your account before settlement.
What do sellers need to do before settlement day?
Use this checklist in the weeks leading up to settlement.
- Get an ATO clearance certificate. Since 1 January 2025, every seller of Australian property needs one, whatever the price. Without it, the buyer must withhold 15% of the price and pay it to the ATO. Apply early through the Australian Taxation Office. Each owner needs their own certificate.
- Sign your lender’s discharge authority and tell your lawyer which lender you are with.
- Give your lawyer your bank details for the sale proceeds, and confirm them by phone.
- Plan your move. Book removalists so you are fully out before settlement. Remove rubbish and anything not included in the sale.
- Leave the inclusions behind. Anything listed as included in the contract must stay. If you are unsure, read our guide to fixtures and chattels.
- Gather keys, remotes and codes. Give all keys, garage remotes, alarm codes and swipe cards to your agent.
- Arrange final meter readings and close your electricity, gas and internet accounts from the settlement date.
- Keep your home insurance in place until settlement. Do not cancel it early.
Why you must keep insuring the property
Under section 66K of the Conveyancing Act 1919 (NSW), the risk of damage to the property generally stays with the seller until settlement (or until the buyer takes possession, if that happens earlier). If the house is damaged by fire or storm before settlement, the buyer may be able to end the contract or ask for a lower price. Our guide to property insurance in NSW explains more.
The buyer’s pre-settlement inspection
Most contracts let the buyer inspect the property shortly before settlement. They will check that the property is in the same condition as when they signed (apart from fair wear and tear) and that the inclusions are still there and working. Leaving the home clean and empty helps the day run smoothly. See our guide to pre-settlement inspections.
What are settlement adjustments?
Some costs, like council rates, are paid in advance for a period that runs past settlement. Adjustments make sure you only pay for the days you own the property, and the buyer pays from settlement onwards. Your lawyer works these out and they are added to, or taken off, the amount the buyer pays.
| Cost | How it is usually handled |
|---|---|
| Council rates | Adjusted at settlement. If you have paid ahead, the buyer refunds you for the days after settlement. |
| Water and sewerage rates | Fixed charges are adjusted. Water usage is usually worked out from a special meter reading. |
| Strata levies | Adjusted for units and townhouses, based on the levy period. |
| Rent (if tenanted) | Rent paid in advance past settlement is credited to the buyer. |
| Land tax | Only adjusted in limited cases set out in the contract. Ask us whether this applies to you. |
How do you receive your sale money?
The buyer’s deposit is usually held in the real estate agent’s trust account until settlement. The agent normally takes their commission and marketing costs from the deposit and pays the balance to you after settlement.
The rest of the price is paid through the settlement platform. Your lender is paid first, then any other amounts you owe (such as adjustments). The remaining funds go to the bank account (or accounts) you have nominated. In most cases the money arrives on the same day.
Watch out for scams. Criminals sometimes send fake emails asking you to change your bank details before settlement. Always confirm your details with your lawyer by phone, using a number you already know.
What if settlement is delayed?
Settlements can be delayed for many reasons. The buyer’s finance may not be ready, a lender may not be prepared, or there may be a technical problem with the platform.
- Short delays are often sorted out by agreeing on a new time or date.
- If the buyer is at fault, many contracts include a special condition that lets you charge interest or costs for late settlement.
- If the delay continues, your lawyer can serve a notice to complete. This sets a firm deadline and can give you the right to end the contract if it is not met.
Do not hand over the keys or let the buyer move in until your lawyer confirms settlement is complete.
Settlement day FAQs
Do I need to attend settlement?
No. Settlement happens online between the lawyers and banks. We will call or email you once it is done.
What time does settlement happen?
The time is agreed between the parties and set in the electronic workspace. It is usually during business hours. Ask your lawyer to confirm the time a few days before.
Can I stay in the home after settlement?
Only if the buyer agrees in writing, for example under a short lease or licence agreement. Without this, you must be fully moved out by settlement.
When can I cancel my home insurance?
Once your lawyer confirms settlement is complete. Until then, the property is usually still at your risk.
Will I have to pay capital gains tax?
It depends. Your main residence is usually exempt, but investment properties often are not. Speak with your accountant before you sell.
Need help selling property in NSW?
Talk to our property team
Property & Conveyancing
Our team can manage your sale from contract preparation through to settlement day. We keep you updated at each step and deal with the agent, the buyer’s lawyer and your bank for you.
Visit our selling a property page to learn more about our services or to get a quote.
This article is general information only and is not legal advice. It reflects NSW law at the date of publication. Please contact us for advice about your circumstances.
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