Conveyancing & Property Settlement in Australia: A Complete Guide

Overview

Buying or selling property in Australia involves a legal process called conveyancing. This is the work required to transfer ownership of real estate from one party to another. Whether you are a first home buyer or an experienced investor, understanding how conveyancing and settlement work helps you avoid surprises and ensures the transaction runs smoothly.

What Is Conveyancing?

Conveyancing is the legal and administrative process of transferring property ownership. It covers everything from reviewing the contract of sale to registering the new title in the buyer's name. The process is handled by a licensed conveyancer or a solicitor specialising in property law.

While solicitors and conveyancers perform similar functions, a solicitor can also provide legal advice on complex matters such as disputes, unusual contract clauses, or development-related issues. A conveyancer is licensed specifically for property transfers and is often less expensive for straightforward transactions.

What Does a Conveyancer Do?

A conveyancer or property solicitor handles the following:

For Buyers:

• Reviewing the contract of sale and identifying any unusual or unfavourable clauses
• Conducting property searches (title search, council search, planning certificates, drainage diagrams, strata reports)
• Advising on special conditions, easements, covenants, and zoning
• Coordinating with your lender to ensure mortgage documents are prepared
• Calculating adjustments (council rates, water rates, strata levies) between buyer and seller
• Arranging settlement — the formal exchange of funds and legal documents
• Registering the transfer of title with the relevant state land titles office

For Sellers:

• Preparing the contract of sale and vendor disclosure documents
• Responding to buyer requisitions (formal questions about the property)
• Coordinating discharge of any existing mortgage
• Arranging settlement and transfer of title

The Settlement Timeline

Settlement is the date when ownership officially transfers from seller to buyer. The timeline varies by state and by agreement between the parties, but a typical settlement period is:

• NSW: Usually 42 days (6 weeks) from exchange of contracts
• Victoria: Usually 30 to 90 days from signing, with 60 days being common
• Queensland: Usually 30 to 42 days from contract date
• Western Australia: Usually 28 to 42 days
• South Australia: Usually 28 to 42 days

These are standard timeframes, but the settlement period is negotiable and should be agreed upon in the contract. Shorter or longer settlement periods can be arranged to suit both parties.

How Much Does Conveyancing Cost?

Conveyancing fees typically range from $800 to $2,500 for a standard residential transaction. The cost depends on:

• Location: Fees vary between states and between city and regional areas
• Complexity: Strata properties, off-the-plan purchases, or properties with unusual title arrangements may cost more
• Professional type: Solicitors generally charge more than licensed conveyancers
• Disbursements: In addition to professional fees, you pay for searches and certificates (title searches, council certificates, strata reports, etc.), which typically add $300 to $800

Always request a full quote including disbursements before engaging a conveyancer.

Key Documents in the Process

• Contract of sale: The legally binding agreement between buyer and seller, containing the price, settlement date, special conditions, and property details
• Section 32 / Vendor statement (Victoria): A disclosure document the seller must provide before the buyer signs, detailing title information, planning restrictions, outgoings, and other matters
• Title search: Confirms the current registered owner, any mortgages, caveats, easements, or encumbrances on the property
• Planning certificate: Shows the zoning of the property and any planning restrictions
• Strata report (if applicable): Details the financial health of the body corporate, including levies, sinking fund balance, and any ongoing disputes or planned works
• Transfer document: The legal document that transfers ownership, signed by both parties

What Happens on Settlement Day

Settlement is now conducted electronically in most Australian states using a platform called PEXA (Property Exchange Australia). On settlement day:

1. The buyer's lender transfers the purchase funds
2. The seller's mortgage (if any) is discharged
3. Stamp duty is paid (if not already paid)
4. The transfer of title is registered electronically
5. The buyer (or their lender) becomes the new registered owner
6. Keys are released to the buyer

The entire process typically takes less than an hour on the day, though preparation by the conveyancers occurs in the weeks leading up to settlement.

Tips for a Smooth Settlement

• Engage a conveyancer early — before you sign anything
• Read the contract carefully — do not rush into signing, especially at auction
• Ensure your finance is unconditional before the finance clause expires
• Complete building and pest inspections within the timeframes specified in the contract
• Keep your conveyancer informed of any changes to your financial situation or settlement requirements
• Budget for all costs — use our Property Purchase Cost Calculator to estimate stamp duty, conveyancing fees, and other purchase costs

Estimate your purchase costs: Property Purchase Cost Calculator | Calculate stamp duty: Stamp Duty Calculator.

Sources: NSW Fair Trading, Consumer Affairs Victoria, Queensland Government — Buying Property, PEXA.