If you’re buying your first home in Western Australia, settlement is the day the property becomes yours: money changes hands and the transfer of ownership is registered, but most of the work happens in the weeks before.

What happens between your offer and settlement

This is what happens between the day your offer is accepted and settlement day:

• you complete your application for finance with your bank or broker and your lender formally approves your finance;
• your settlement representative orders the title searches, so anything registered against the property comes to light;
• they lodge the contract for duty assessment and claim any concession you qualify for;
• they work out the adjustments, which split the rates, water and any strata levies between you and the seller;
• you inspect the property again shortly before settlement; and
• you make sure any funds you need to complete the purchase are available.

The first home buyer duty concession

First home buyers in WA may pay reduced transfer duty or none at all depending on what the property is worth and whether it is vacant land, new, or established. RevenueWA publishes the current rates and thresholds and who is eligible.

See also Don’t get stung by the duty lodgement deadline.

The first home owner grant

Your application for the duty concession also covers the grant, if you are eligible. The first home owner grant is only available for a new home, but the duty concession applies to an established home as well.

What you pay on the day, beyond the purchase price

The purchase price is not the only cost of settlement. You’ll also need to pay:

• transfer duty, unless you qualify for a concession;
• land title registration fees and title searches;
• the electronic settlement fee;
• your settlement agent’s fees; and
• your share of the rates, taxes and water from the settlement date onward.

See our FAQs on what a disbursement is and how rates and taxes are adjusted at settlement.

What to do before settlement date

Before settlement date you should:

• verify your identity with your settlement representative and lender;
• confirm your finance is unconditional and check your lender is ready for the settlement date;
• arrange building insurance from the date of settlement or possession, whichever is earlier (your lender will need a copy of this too);
• book your final inspection for as close to settlement as the agent will allow; and
• budget for the costs above. Your settlement representative will send you a statement before settlement with the final figure on it.

Where first home buyers most often get caught

These things account for most of the trouble we see:

• leaving a finance application to the last minute;
• not signing mortgage documents quickly; and
• skipping the final inspection, which is the only chance to raise something before the settlement date.

Frequently asked questions

When do I get the keys?

If the property is the seller’s principal place of residence, they have until 12 noon on the day after settlement to hand the keys over. If it isn’t, you get them once settlement is completed. The agent usually holds the keys, so arrange collection with them.

Do I need to be there on the day?

No. Settlement happens electronically, so you don’t need to attend.

What is the standard settlement period in WA?

Most real estate contracts in Western Australia are settled within six to eight weeks of the offer being accepted. A common timeframe is 21 days from acceptance for the buyer to obtain finance and 21 days from finance to settlement. Settlement can only occur on business days.

Talk to us about your first settlement

We act for first home buyers across Perth.

Download an itemised quote for your own purchase or call the settlements team on (08) 9220 4430.

Related: Your pre-settlement inspection is important.

This article is general information and not legal advice. Every property transaction turns on its own facts.