What happens on settlement day?

Before the day

In the days beforehand the buyer is usually entitled to a pre-settlement inspection, which is a final walk through to check the property is in the state the agreement requires and that anything included in the sale is still there.

Your lawyer prepares a settlement statement. That sets out the price, deducts the deposit already paid, and apportions the outgoings, which means splitting rates and any body corporate levies between you and the buyer at the settlement date, so you carry them up to that day and the buyer carries them from it.

Your lawyer also arranges the discharge of your mortgage with your bank, so the loan can be repaid out of the proceeds and the bank's interest comes off the title.

On the day

• The house is empty, clean and the rubbish is gone, unless the agreement says otherwise.
• The buyer's lawyer transfers the balance of the price to your lawyer.
• The transfer of title is registered, and the property becomes the buyer's.
• Your lawyer confirms settlement has happened, and the keys are released to the buyer, usually through the agent.
• Your lawyer repays your mortgage and makes the other payments the settlement statement provides for.

Settlement is not tied to a particular time of day. It completes when the funds and the registration are both in place, which can be at any point during business hours, and occasionally later than either side expected.

What you should do

Be genuinely finished the day before if you can. Take meter readings, cancel or transfer the power, internet and insurance from the right date, leave keys, remotes, alarm codes and manuals where you agreed to leave them, and give your lawyer the bank account the money should go to well in advance.

Keep your phone on. If something is queried at the last moment, a quick answer from you is usually what unlocks it.

Afterwards

Once the mortgage and the other deductions are paid, the balance goes to you. Your lawyer will send a statement showing every figure. Check it against what you were told at the start, and ask about anything you do not recognise.