---
title: Property Settlement Process in Victoria Explained | GNT Finance
description: How settlement works in Victoria step by step, from loan documents and PEXA to adjustments, final inspection, stamp duty and keys, plus late settlement rules.
url: https://gntfinance.com.au/legal/settlement-process-victoria/
section: legal
updated: 2026-09-01
author: Gorakh Timilsina, GNT Finance
---

# The property settlement process in Victoria

**In short:** Settlement is the day the purchase completes: your lender and conveyancer pay the balance of the price through the PEXA electronic platform, land transfer duty is paid, the transfer is lodged for registration under the Transfer of Land Act 1958 (Vic), and the agent releases the keys. It usually happens 30 to 90 days after signing, on the date in your contract, and late settlement attracts penalty interest.

Settlement feels like a black box to most buyers because almost everything happens between conveyancers and banks on a screen. Knowing the sequence helps you avoid the two things that go wrong most often: loan documents returned late and funds not cleared in time.

## What the law says

Three pieces of legislation shape a Victorian settlement:

- **Sale of Land Act 1962 (Vic)** and the contract itself set the settlement date, the adjustments of rates and outgoings, the purchaser's right to a final inspection, default notices and penalty interest.
- **Electronic Conveyancing National Law (Victoria)** underpins electronic settlement. Since late 2018 almost all Victorian transfers and mortgages must be lodged electronically, in practice through PEXA, where the buyer's and seller's representatives and both lenders complete the transaction in a shared online workspace.
- **Transfer of Land Act 1958 (Vic)** governs registration of the transfer and the mortgage on the title at Land Use Victoria. Registration is what makes you the legal owner.

Land transfer duty under the Duties Act 2000 (Vic) is assessed and paid through the State Revenue Office's Duties Online system as part of settlement. Duty is otherwise due within 30 days of the transfer, but in an electronic settlement it is paid on the day.

## Settlement step by step

### Before settlement

1. **Formal loan approval.** Your lender issues unconditional approval and sends loan documents.
2. **Sign and return loan documents.** Mortgage, loan agreement, direct debit and insurance details. Many lenders accept electronic signing, but a mortgage still requires verification of identity.
3. **Verification of identity and client authorisation.** Your conveyancer verifies your identity face to face or through an approved agent and you sign an authorisation for them to act in PEXA.
4. **Building insurance.** Lenders require insurance in place from settlement, sometimes from the date you sign.
5. **Searches and certificates.** Your conveyancer orders title, rates, water, land tax clearance and owners corporation certificates to confirm nothing has changed and to calculate adjustments.
6. **Statement of adjustments.** Rates, water service charges and owners corporation fees are apportioned to the settlement date. Since 1 January 2024, on most residential contracts the vendor can no longer pass their land tax on to you as an adjustment.
7. **Funds.** Your conveyancer sends you a settlement statement showing the exact amount you must contribute on top of the loan. The money must be in the conveyancer's trust account or ready for PEXA as cleared funds, usually at least 2 business days before settlement.
8. **Final inspection.** The standard contract lets you inspect the property in the 7 days before settlement to confirm it is in the same condition as when you bought it and the chattels are present.

### On settlement day

9. **PEXA settlement.** At the scheduled time, the workspace locks, funds move from your lender and your conveyancer to the vendor's lender and the vendor, and the transfer and mortgage are lodged for registration.
10. **Duty paid.** Duty is deducted and paid to the SRO from the settlement funds.
11. **Keys.** Once the vendor's representative confirms settlement, the agent releases the keys.

### After settlement

12. **Registration.** Land Use Victoria registers the transfer and your lender's mortgage, usually within days.
13. **Notices.** Your conveyancer notifies council, the water authority and the SRO of the change of ownership.
14. **First repayment.** Your loan starts accruing interest from settlement day.

### Timeline at a glance

| Timing | Action | Who |
|---|---|---|
| Day 0 | Contract signed, deposit paid | You, agent |
| Days 1–21 | Formal loan approval | Lender, broker |
| Days 14–35 | Loan documents signed, VOI completed | You, conveyancer |
| Two weeks before | Certificates ordered, adjustments prepared | Conveyancer |
| One week before | Final inspection; funds requested | You, conveyancer |
| 2 business days before | Cleared funds in trust | You |
| Settlement day | PEXA settlement, duty paid, keys released | All parties |
| Days after | Transfer and mortgage registered | Land Use Victoria |

## Worked example

You are buying a $650,000 house in Craigieburn with a 60-day settlement, a $65,000 deposit already paid, and a $520,000 loan (80% LVR, so no LMI). You are not a first home buyer.

At settlement, the figures look roughly like this:

| Item | Amount |
|---|---|
| Purchase price | $650,000 |
| Less deposit paid | ($65,000) |
| Less loan funds | ($520,000) |
| Balance of price | $65,000 |
| Land transfer duty (general rate: $2,870 + 6% of $520,000) | $34,070 |
| Rates adjustment (vendor prepaid to end of quarter) | $410 |
| Water service adjustment | $95 |
| Transfer registration and lodgement fees | Confirmed by conveyancer |
| Conveyancing fee | Confirmed by conveyancer |

You need roughly $100,000 in cleared funds on top of the loan. If you were an eligible first home buyer, the duty on a $650,000 home would instead fall under the sliding concession between $600,001 and $750,000. Use our [stamp duty calculator](/calculators/stamp-duty/) to see the exact figure for your price.

## When settlement is late

If either party isn't ready on the day, settlement can be rescheduled by agreement, but the party at fault bears the consequences:

- **Penalty interest.** The standard contract charges interest on the unpaid balance at the rate fixed under the Penalty Interest Rates Act 1983 (Vic) plus 2% a year for each day of delay. On a $585,000 balance that runs into hundreds of dollars a week.
- **Default notice.** The vendor can serve a 14-day default notice. If you still can't settle, they may rescind, keep the deposit and claim their losses. Read [what happens if finance falls through](/legal/what-happens-if-finance-falls-through/).
- **Vendor delay.** If the vendor isn't ready, you can serve a default notice on them, and you are generally not liable for interest for their delay.

Most late settlements are caused by loan documents being returned late, a lender's funds not being certified in time, or a last-minute discrepancy in the adjustments. All three are avoidable with a week of buffer.

## What it means for your home loan

- **Your lender needs time.** Formal approval, document preparation, signing and certification of funds each take days. Tell your broker the settlement date before you sign.
- **Funds to complete.** Your lender will not lend more than the approved amount. Duty, fees and adjustments come from your own funds. Our [upfront costs calculator](/calculators/upfront-costs/) helps you plan.
- **Simultaneous settlements.** If you are selling and buying on the same day, both settlements are linked in PEXA. A delay in one cascades into the other, which is where [bridging finance](/services/bridging-loans/) can help.
- **Refinancing settles the same way.** A [refinance](/services/refinancing/) is a settlement between two lenders in PEXA, with no vendor involved.

GNT Finance tracks your loan through to settlement and liaises with your conveyancer on funding, so the lender's side is never the reason for a delay. Our home-loan service is at no cost to you in most cases.

## Common mistakes

- **Sitting on loan documents.** Every day they sit on the kitchen bench pushes settlement closer to the deadline.
- **Transferring funds too late.** Bank transfer limits and clearing times catch people out. Ask your bank to lift daily limits a week ahead.
- **Skipping the final inspection.** Damage or missing chattels are much harder to resolve after keys are handed over.
- **Forgetting building insurance.** Lenders check for it before they release funds.
- **Assuming the vendor will agree to a later date.** They may, but penalty interest is theirs to claim.

## Frequently asked questions

### How long does settlement take in Victoria?

Settlement occurs on the date written in the contract, commonly 30, 45, 60 or 90 days after signing. Off-the-plan contracts settle a set number of days after the plan of subdivision is registered, which may be a year or more away. The electronic settlement itself takes minutes once all parties are ready in PEXA.

### What time of day does settlement happen?

Settlements are booked into PEXA at a set time, typically between mid-morning and mid-afternoon on a business day. Keys are released once the vendor's representative confirms the funds have landed, often within an hour of the booked time. Plan removalists for late afternoon or the following day to be safe.

### What happens if settlement is delayed by the bank?

You are still responsible under the contract, so the vendor can charge penalty interest and serve a default notice. Your broker should escalate with the lender immediately and your conveyancer should request a short extension in writing. Where the delay is clearly the lender's fault, some lenders will reimburse penalty interest, but you cannot rely on it.

### Do I pay stamp duty at settlement in Victoria?

Yes. Land transfer duty is assessed through the SRO's Duties Online and paid from the settlement funds on the day. It must be included in the money you provide to your conveyancer, because your lender will not fund it beyond your approved loan amount. First home buyers pay no duty on homes valued up to $600,000 and a reduced amount up to $750,000.

### What is a statement of adjustments?

It is the calculation your conveyancer prepares to apportion council rates, water service charges and owners corporation fees between vendor and purchaser as at settlement. If the vendor has paid rates for the full quarter, you reimburse them for the days after settlement. For most residential contracts signed since January 2024, land tax is not adjusted against the buyer.

## Talk to GNT Finance

A smooth settlement starts with a lender that can meet your contract date. GNT Finance manages formal approval, loan documents and funding with your conveyancer so keys are handed over on the day you planned. [Book a free consultation](/contact/) or call 0426 403 703.

*This page is general information only and not legal, tax or financial advice. Laws change — confirm current rules with the State Revenue Office, the ATO or a licensed professional.*