Buying a home
Settlement
What actually happens at settlement, the pre-settlement inspection you're entitled to, and the adjustments and insurance timing to get right.
- Settlement is conducted between legal practitioners/conveyancers and lenders, not buyer and seller directly.
- You can inspect the property at any reasonable time during the week before settlement.
- Rates and outgoings are adjusted at settlement; land transfer duty is due at or within three months after.
- Arrange building insurance from contract signing, not settlement day.
What actually happens at settlement
In Victoria, settlement is an official process usually conducted between the buyer's and seller's legal practitioners or conveyancers and lenders — not a meeting between buyer and seller directly (Consumer Affairs Victoria, verified 29 Jul 2026). Three things happen: you pay the balance of the purchase price to the seller, you receive the property title and become the registered owner, and you take possession of the property (unless otherwise arranged).
The pre-settlement inspection
You're entitled to inspect the property at any reasonable time during the week before settlement (Consumer Affairs Victoria, verified 29 Jul 2026). The contract requires the seller to return the property in the same condition as when it was sold — use this inspection to confirm every contract-listed item is present and undamaged, and raise any new damage with your conveyancer before settlement, not after.
Adjustments and duty
Council rates and other outgoings are adjusted between buyer and seller at settlement — the seller is responsible up to and including settlement day, the buyer from the day after (Consumer Affairs Victoria, verified 29 Jul 2026). Land transfer duty is calculated on the purchase price or market value, whichever is greater, and can be paid at settlement or within three months after.
Insurance timing
Arrange building insurance to take effect from when the seller signs the contract of sale, not from settlement day — you carry an insurable interest from contract signing even though the seller's own insurance typically remains in place until settlement (Consumer Affairs Victoria, verified 29 Jul 2026). See the insurance guide for what building, contents and mortgage protection cover each involve.
Practical checklist
Before and at settlement
- Confirm your conveyancer/lender has a settlement date and location arranged
- Do the pre-settlement inspection during the week before settlement
- Arrange building insurance effective from contract signing
- Confirm rates and outgoings adjustments with your conveyancer
- Arrange to collect keys from the agent once settlement is confirmed complete
Questions for a professional
- Is settlement on track for the agreed date, and what happens if it's delayed?
- Have the rates and outgoings adjustments been calculated and confirmed?
Official resources
Sources and methodology
- Before property settlement — Consumer Affairs Victoria (retrieved 29 Jul 2026)
- Settlement — Consumer Affairs Victoria (retrieved 29 Jul 2026)
Figures on this page are drawn from Delora's local knowledge graph, refreshed from these primary sources and checked for changes on a regular schedule. If a figure here looks out of date, the official source above is always the authority — please let us know.