Settlement day is when the money moves and the property changes hands. People also use the word “settlement” to describe the whole stretch between signing the contract and that day, which in Western Australia is usually six to eight weeks.
Settlement day
On the day, the balance of the purchase price is paid and the transfer of land is lodged for registration. This happens electronically, so nobody attends in person. This is often described as the day that “settlement goes through”.
The property is yours from that point. If it was the seller’s principal place of residence they have until 12 noon the next day to move out. If it wasn’t their residence, you are entitled to the keys as soon as settlement is complete. The real estate agent will coordinate the handover of the keys.
The settlement period
Settlement is also the name for the weeks between the contract being signed and the day the legal transfer completes. In Western Australia most contracts settle within six to eight weeks from the date they are signed. The dates in your own contract are what actually set the timeframe, so it’s worth reading those rather than relying on the average.
Who acts for you
Both buyer and seller appoint their own settlement representative, which is either a law firm or a licensed settlement agent. One representative can act for both sides where there is no conflict and both parties consent in writing. Otherwise each side appoints its own.
A licensed settlement agent can complete your settlement but cannot give you legal advice on it. A lawyer can do both. See settlement agent, conveyancer or lawyer.
Your representative handles the paperwork and makes sure the promises in the contract are carried out. That work is also called conveyancing, though the term is less common in WA. A lawyer or settlement agent doing it is also called a conveyancer.
Frequently asked questions
How long does settlement take in WA?
Most contracts settle within six to eight weeks of the offer being accepted. Your own contract sets the dates. A common shape is 21 days from acceptance for finance and 21 days from finance to settlement.
Do I need to be at settlement?
No. Settlement happens electronically, so there’s nothing to attend and nothing to sign on the day.
What is the difference between settlement and possession?
Settlement is when ownership transfers. Possession is when you can move in, which is usually the same day but can be earlier by agreement or later if the seller was living there. See possession prior to settlement.
Talk to us about your settlement
We act for buyers and sellers on residential and commercial property settlements across Perth and Western Australia.
Call the settlements team on (08) 9220 4430 or download an itemised quote for your own transaction.
Related: When do you appoint a settlement agent in WA?
This article is general information and not legal advice. Every property transaction turns on its own facts.