a person signing a document

GJA Law – Sydney’s Trusted Property Settlement Lawyers

Settlement in Sydney

Man is holding house model

Settlement is a significant legal matter that affects many individuals and families in Sydney. At GJA Law, we provide clear, practical advice and tailored services designed to protect your interests. Our approach combines local expertise, transparency in fees, and a commitment to simplifying complex legal processes.

What Is Settlement?

Property settlement is the legal process where the final transfer of ownership occurs from the seller to the buyer. It involves:

Start Your Legal Matter with Confidence

    Step 1/4

    What kind of legal matter are you enquiring about?

    Step 2/4

    Where is the property or matter based?

    Step 3/4

    Your contact details




    Step 4/4

    Is there anything else you’d like us to know?


    • The buyer paying the balance of the purchase price.
    • The seller discharging any mortgages or encumbrances.
    • The transfer of title via NSW Land Registry Services (NSW LRS).
    • Adjustment of rates, taxes, and outgoings between parties.

    In Sydney, settlement typically occurs 42 days after exchange of contracts, though this can be negotiated. The process is now almost entirely conducted electronically through PEXA (Property Exchange Australia), enhancing speed and security—but also requiring precise legal coordination.

    • I highly recommend GJA for anyone who needs legal advice and representation. Their care and attention to detail is outstanding.

      Brian


    Read More Testimonials from our Clients!

    Legal Framework Governing Settlement

    Settlement in NSW is governed by a combination of legislation and industry standards:

    • Conveyancing Act 1919 (NSW): Sets out contract requirements, cooling-off rights, and vendor disclosure obligations.
    • Real Property Act 1900 (NSW): Governs title registration and transfer.
    • Duties Act 1997 (NSW): Regulates stamp duty payment, which must be arranged before or at settlement.
    • Privacy and electronic transaction laws: Underpin the use of PEXA and digital signatures.

    Failure to comply with these laws—such as late duty payment or incorrect transfer documentation—can delay or invalidate settlement.

    Role of a Property Lawyer at Settlement

    While conveyancers handle routine transactions, a property lawyer adds critical value in managing risk and complexity. At GJA Law, our role includes:

    • Reviewing the contract and ensuring all special conditions are met.
    • Conducting pre-settlement title and planning searches.
    • Calculating and verifying adjustments for council rates, water, and land tax.
    • Coordinating with banks, brokers, and mortgagee discharge authorities.
    • Managing trust account funds in compliance with legal obligations.
    • Resolving last-minute issues—such as unexpected caveats or loan delays.

    For developers, investors, or complex transactions (e.g., off-the-plan, subdivisions, or foreign buyers), legal expertise is essential to avoid costly errors.

    The Settlement Process

    The settlement process in Sydney follows a structured timeline:

    1. Pre-Settlement (1–2 weeks prior):
      Final searches are conducted; adjustments are calculated; finance approval is confirmed.
    2. Settlement Day:
      Conducted via PEXA, where lawyers and financiers exchange:
      • Funds (purchase price minus deposit).
      • Discharge of mortgages (from seller’s bank).
      • Transfer documents.
      • Stamp duty confirmation.
    3. Post-Settlement:
      NSW LRS registers the transfer—usually within 1–2 business days. The buyer receives title confirmation and keys.

    The entire process is now completed electronically and often within minutes, but only if all parties are fully prepared.

    Settlement for Buyers

    Buyers must ensure:

    • Finance is formally approved and funds are available.
    • Building and pest inspections (if conditional) are complete.
    • Final inspection of the property is conducted 24–48 hours before settlement.
    • All adjustments (e.g., council rates) are accurate and fair.

    At GJA Law, we protect buyers by verifying that the property is free of unexpected encumbrances and that the seller has fulfilled all contractual obligations—such as removing fixtures or completing agreed repairs.

    Settlement for Sellers

    Sellers must:

    • Discharge any existing mortgages before or at settlement.
    • Ensure all inclusions (e.g., appliances, blinds) remain as agreed.
    • Provide vacant possession (unless otherwise stated).
    • Pay outstanding rates, water, and strata levies up to settlement.

    We assist sellers by coordinating with banks for timely mortgage discharge and ensuring no last-minute surprises—such as a buyer’s finance falling through—disrupt the transaction.

    Delays, Defaults, and Settlement Disputes

    Settlement delays are common and can arise from:

    • Finance approval delays (especially in volatile lending markets).
    • Bank processing backlogs for mortgage discharges.
    • Errors in PEXA workspace setup (e.g., wrong account details).
    • Disputes over adjustments or property condition.

    If a party fails to settle on time, they are in default, and the non-defaulting party may:

    • Charge penalty interest (10% per annum under standard contracts).
    • Issue a “notice to complete” (typically 14 days).
    • Terminate the contract and retain the deposit (for buyer default).

    At GJA Law, we proactively manage timelines and negotiate extensions where appropriate—preserving deals and relationships.

    Electronic Settlement and PEXA

    Since 2019, nearly all property settlements in NSW must be conducted via PEXA, Australia’s electronic property exchange platform. Benefits include:

    • Faster processing (same-day registration).
    • Reduced fraud risk through secure digital verification.
    • Real-time fund and document exchange.

    However, PEXA requires:

    • Correct party details and banking information.
    • Accurate duty payment verification.
    • Proper authorisation from all stakeholders.

    Our lawyers are PEXA-certified and ensure every settlement workspace is meticulously prepared—minimising technical errors that cause delays.

    Common Settlement Mistakes to Avoid

    1. Leaving finance approval to the last minute – Causes avoidable delays.
    2. Skipping the final inspection – Risks accepting a damaged or non-compliant property.
    3. Assuming “exchange = done” – Many obligations (e.g., repairs, disclosures) must be fulfilled before settlement.
    4. Failing to verify mortgage discharge – Can block title transfer.
    5. Not budgeting for adjustments – Unexpected water or land tax bills can strain cash flow.

    At GJA Law, we implement a settlement checklist tailored to your transaction—ensuring nothing is overlooked.

    Our Services

    GJA Law assists Sydney clients with a wide range of settlement matters, including:

    • Reviewing and drafting contracts or agreements
    • Advising on legal rights and obligations
    • Negotiating terms or resolving disputes
    • Working with agents, financial advisors, or other professionals where necessary
    • Managing the process through to completion with accuracy and efficiency

    • I have used GJA on several occasions and always found them to be friendly, professional and thorough.

      Fiona

    Why Choose GJA Law?

    • Clear, practical advice tailored to your situation
    • Fixed-fee certainty for common matters and transparent time-costed support for complex issues
    • Decades of experience across property, estate planning, and family law
    • Early adopters of technology to streamline processes and reduce errors
    • A client-focused approach that prioritises your goals and peace of mind

    Learn More About Subdivision

    Contact Us

    If you are dealing with settlement in Sydney, contact GJA Law today. Our experienced lawyers will guide you through the process with confidence and provide the support you need.

    Common Settlement FAQ

    What exactly happens at property settlement in NSW?

    Settlement is the point at which a property transaction is legally completed. The buyer pays the balance of the purchase price, the seller’s mortgage (if any) is discharged, and the transfer of ownership is lodged for registration. Once settlement is confirmed, ownership officially passes to the buyer and keys are released. Although settlement is largely electronic, it remains a legally significant process that must be executed precisely.

    How long does settlement usually take after contracts are exchanged?

    The standard settlement period in Sydney is 42 days after exchange of contracts, but this timeframe can be negotiated. Shorter settlements may suit cash buyers, while longer periods are common where finance, complex titles, or sales of existing properties are involved. Because settlement dates are contractually binding, delays can trigger penalties, making early preparation essential.

    What issues commonly delay property settlement?

    Settlement delays often arise from finance approval issues, bank backlogs in processing mortgage discharges, or errors in electronic settlement documentation. Disputes over property condition, final inspection findings, or adjustment figures can also cause last-minute complications. Proactive legal coordination helps identify and resolve these issues before they escalate into settlement failure.

    What happens if one party cannot settle on time?

    If a party fails to settle on the agreed date, they are considered in default under the contract. The non-defaulting party may charge penalty interest, issue a notice to complete, or ultimately terminate the contract. These outcomes can involve significant financial consequences, including loss of deposit for buyers, which is why legal advice is critical when delays arise.

    Do buyers and sellers attend settlement in person?

    No. Almost all property settlements in NSW are now completed electronically through PEXA. Buyers and sellers do not attend settlement physically; instead, their lawyers and lenders exchange funds and documents online. While this has made settlement faster and more secure, it also means accuracy, timing, and coordination behind the scenes are more important than ever.

    Why is legal advice important during the settlement stage?

    Settlement involves strict legal obligations, precise financial calculations, and compliance with multiple laws and regulations. Even minor errors—such as incorrect adjustments or missing documents—can delay settlement or expose parties to financial risk. A property lawyer ensures all contractual conditions are satisfied, risks are managed, and settlement proceeds smoothly, particularly in complex or high-value transactions.

    Related Articles