Glossary
Settlement
Settlement is the completion of a property transaction or loan, when funds change hands, documents are exchanged and the transfer or mortgage is lodged for registration. In most of Australia it now happens electronically.
An example
On settlement day, the buyer's lender pays the purchase funds, the seller's mortgage is discharged and the transfer and new mortgage are lodged with the land titles office through an electronic platform.
Why it matters
Settlement dates drive bridging and short-term loan timing. If a sale settles late, interest continues to accrue and a purchase may be at risk, so building a buffer into the timeline is sensible.
Points to check
Confirm with your conveyancer and lender that all conditions are met well before settlement day, including signed documents, insurance and funds to complete. Ask what happens if settlement is delayed and whether penalty interest or fees apply under the contract. For bridging or construction loans, settlement dates drive the timing of drawdowns and repayments, so coordinate them carefully.