Settlement FAQ from vendors. What happens after the contract is signed?

Settlement is the final handover, when legal ownership transfers and the sale proceeds are directed to your bank account. At Prepared, we make sure you’re ready for every step.

Here’s what sellers in Victoria need to know between signing and settlement:

What happens at settlement?

Settlement is when your property officially changes hands.

Your conveyancer coordinates with the buyer’s legal representative, your lender (if applicable), and the Land Titles Office to:

• Transfer title to the buyer
• Pay out any mortgage
• Exchange funds
• Confirm legal completion

You don’t need to attend. We manage the process on your behalf.

What documents do I need to provide?

To avoid delays, ensure your conveyancer has:

• The fully signed Contract of Sale
• A mortgage discharge authority (if applicable) or clear Title
• Your bank account details for sale proceeds
• Your ATO clearance certification (Australian tax residents) or variation (foreign residents, if applicable)
• Your Verification of Identity and Client Authorisation forms for settlement

How are council rates, water, and taxes handled?

We calculate financial adjustments, so each party pays their fair share up to the day of settlement. If you’ve prepaid beyond settlement, you’ll be reimbursed by the purchaser as part of the final statement.

What about my mortgage?

You will need to prepare a discharge form (we will guide you on the steps). Once your requested your bank discharge the mortgage, we will coordinate with your lender to ensure your loan is paid out from the sale proceeds, and the title is released for transfer.

Tip: Some banks need 10+ business days to book settlement—return discharge forms early.

What if settlement is delayed?

Delays on the part of your purchaser can allow you to impose 12% penalty interest. If the purchaser is at fault, we’ll claim what’s owed. If there’s an issue on your side (i.e. your bank isnt ready), we’ll act fast to limit financial or legal exposure.

The buyer asked for early access, should I let them in?

Never allow access or hand over keys before settlement without a formal licence agreement reviewed by your solicitor or conveyancer. This is a common request and your legal team can explain the risks and benefits to you, so you can make an informed decision.

How do I receive my funds?

Sale proceeds are deposited directly to your nominated bank account, less mortgage payouts and any other agreed deductions (e.g., agent commission). Funds are directed via Reserve Bank of Australia or PEXA settlement, so this typically happens within hours of settlement but may take up to 3 business days.

What if the buyer raises a dispute on settlement day?

Don’t panic. If there’s a disagreement, for example about missing inclusions or the property’s condition- we step in immediately to resolve it. Most issues are resolved through negotiation without delaying settlement.

Do I need to be present on settlement day?

No. Settlement is now fully digital via PEXA. Everything happens behind the scenes while you focus on your move.

Can I cancel or change the settlement date?

Once contracts are signed, the settlement date is binding unless both parties agree to vary it in writing. Let us know early if your circumstances change, we may be able to negotiate.

Still unsure? Contact Prepared for tailored settlement guidance that protects your interests. We're with you until the very last click.

The information is general in nature and does not constitute legal advice. If you are buying or selling, please contact us to request legal advice.