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On settlement day, the buyer must pay the seller all outstanding costs to ‘settle’ the purchase of the property; failure to do this on time may result in interest being charged.
2. Preparing for settlement. In the lead-up to the agreed settlement date, buyers must have all their finances in place, and sellers should be ready with all legal and handover documents. A common delay in settlement is missing documents or bank errors - so be prepared!

For first-home buyers, this might mean ensuring all grants or concessions are correctly applied. Investors might need to coordinate settlements across multiple properties or prepare tenancy agreements. Sellers moving interstate or overseas should plan for the logistical aspects of relocating while ensuring all legal obligations are met.
Depending on which state the property is in, the risk of damage to the property passes from the seller to the buyer at different times. In South Australia, Tasmania, the ACT and Queensland, the buyer is responsible for any damage before settlement upon the exchange of contracts.
In New South Wales, Victoria, Western Australia, and Northern Territory, the buyer is responsible for any damage on settlement. Make sure you understand your state’s rules and organise home insurance accordingly to ensure coverage begins and ends at the correct time.

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