Residential property settlement is the final legal process where ownership of a home transfers from seller to buyer.
In Western Australia, the process can be handled by a licensed settlement agent rather than a solicitor or conveyancer, as is the case in some of the other states. Your settlement agent prepares the transfer documents, conducts title searches, liaises with your lender, and attends settlement on your behalf.
Settlement typically takes 30 to 90 days from the date the contract of sale is signed. The process is very complex and multi-layered; however, some general steps involve paying the balance of the purchase price, adjusting rates and taxes between the parties, and officially registering the new owner on the property title.
In WA, settlement is now conducted electronically through PEXA (Property Exchange Australia), which means neither the buyer nor the seller needs to attend in person.
The Key Stages of a Residential Property Settlement
Settlement follows a clear sequence. Understanding each stage helps you know what to expect and when to act.
Stage 1: The Settlement Period
The settlement period begins the moment both parties sign the contract of sale and ends on settlement day.
The length of the period is agreed in the contract. In WA, 30 to 90 days is standard, though shorter or longer periods can be negotiated depending on the circumstances of the sale.
During this time, your settlement agent gets to work. They conduct title searches, check local authority rates and any outstanding orders on the property, prepare the transfer documents, and begin liaising with the relevant financial institutions on your behalf
Stage 2: Conditions of Sale and Finance Approval
Most contracts include conditions that the buyer must satisfy before settlement can proceed.
Finance approval is the most common condition. Until the buyer receives unconditional approval from their lender, the contract remains conditional. Other conditions might include the sale of the buyer’s existing property, a building inspection, or a pest report.
Once all conditions have been satisfied, the contract becomes unconditional. At that point, settlement preparation moves into its final phase.
Stage 3: Pre-Settlement Inspection
Before settlement day, the buyer is entitled to carry out a final inspection of the property.
The purpose of the inspection is to confirm the property is in the same condition as when the contract was signed. If something has changed, such as damage occurring after the contract was signed or an item listed in the contract being removed, the buyer may be able to delay settlement until the issue is resolved. The final inspection is typically arranged through the real estate agent and occurs in the week prior to settlement.
Stage 4: Settlement Day
Settlement day is when the legal transfer of property ownership formally occurs.
In WA, this happens electronically through PEXA. The buyer’s lender releases the loan funds, the seller’s outstanding mortgage is discharged, the balance of the purchase price is transferred to the seller, and the transfer documents are lodged with Landgate, which is WA’s land titles register.
Once Landgate registers the transfer, the buyer becomes the new owner of the property title. Your settlement agent will notify you when the settlement is confirmed.
From that point, the buyer can collect the keys to their new home. If the property is the seller’s primary residence, they have until 12 pm the day following settlement to vacate and hand over the keys.
Key Terms You Will Hear During Settlement
Transfer of Land
The Transfer of Land is the formal document signed by both the buyer and seller to transfer ownership of the property. In WA, this document is lodged with Landgate by the settlement agent on settlement day to officially register the change of ownership on the title deeds.
Simultaneous Settlement
A simultaneous settlement occurs when a buyer is selling their existing property and purchasing a new one on the same day, using the proceeds from the sale to fund the purchase. It requires careful coordination between both settlement agents and the relevant lenders to ensure both transactions are completed at the same time.
Learn More about the Residential Property Settlement Process at Peacock Settlements Today!
Understanding the settlement process puts you in a much stronger position as a buyer or seller. Knowing what your settlement agent is doing, and when, takes a lot of the uncertainty out of what can otherwise feel like a stressful few weeks.
Our team manages every step on your behalf, from title searches and document preparation through to settlement day itself.
Get in touch with our team today to talk through your settlement with people who know WA property inside out.