Settlement is when a property sold legally passes into the hands of the buyer. It’s also when the balance of money owing on the property (sales price minus deposit) is transferred from the lender or buyer to the vendor’s bank account.

The contract of sale determines the length of time between the exchange of contracts and settlement.

Solicitors/conveyancers for both parties will arrange when and where settlement will take place. At settlement, the buyer’s solicitor presents the vendor’s solicitor with a cheque (normally bank cheque) for outstanding rates and other adjustments. Afterwards, the real estate agent will present the new buyer with keys.