A conveyancing transaction is finalised at settlement or completion. The words settlement or completion can be used interchangeably.

In New South Wales, standard provision 16 of the Law Society of New South Wales — Contract for sale of land — 2017 Edition from the New South Wales Law Society and Real Estate Institute of New South Wales details what is to happen at settlement. The equivalent provision in Victoria is general condition 10 of the Sch in the Estate Agents (Contracts) Regulations 2008 (Vic) (the standard form contract), while in Queensland, cl 5 of the Real Estate Institute of Queensland (REIQ) — Contract for residential lots in a community titles scheme — 10th Edition and the Real Estate Institute of Queensland (REIQ) — Contract for houses and residential land — 14th Edition (REIQ contract) details what is required at settlement.

In Western Australia, the relevant provision is cl 3 of the general conditions in the standard contract for sale.

In Tasmania, standard condition 3 of the Standard Conditions of Sale of Real Estate from the Law Society of Tasmania details with what is required at settlement. Note, however, that in South Australia, there is no single standard form of contract, so the requirements for settlement are governed by the terms of the individual contract relating to each transaction.

In the Northern Territory, there is no statutory form of standard Contract of Sale, although under the Agents Licensing Act (NT) real estate agents and conveyancers are required to use a Contract of Sale approved by the Registrar for the purposes of the Act or approved by the Law Society Northern Territory for use by persons who are not legal practitioners. The current form of that approved contract is the August 2006 v 2 version, but the document is in the process of being updated and a new version will be approved during 2016. Clause 3 of the current Law Society approved Contract of Sale details what is to happen at settlement. It is usual in the Northern Territory that settlement occurs when settlement funds are distributed and the transfer and other relevant documents are lodged simultaneously with the Registrar-General. In other words, registration of all documents is dealt with at the settlement and not held over to another time. It is unusual, when dealing with a transaction involving real property in the Northern Territory (except leases and non-transfer related matters) that the registration of documents is delayed.

A pre-settlement inspection is the means by which a purchaser can determine whether what is acquired at settlement is in the same condition when contracts were exchanged. If there has been a change in the state of the property which extends beyond that contemplated by the contract there is then an opportunity for the purchaser not to settle.

See Pre-settlement duties for purchasers and vendors.

The settlement effects the transfer of the balance money. A direction to pay, issued by the vendor, directs the purchaser to pay the balance of the purchase monies in the manner the vendor requires. Often a direction will include money to be paid to an outgoing mortgagee. On receipt of that money the outgoing mortgagee will release the title documents.

An order of the agent is the release of the deposit to the vendor once settlement has occurred. However, in Victoria, a deposit is often released to a vendor prior to settlement via a s 27 statement under the Sale of Land Act 1962 (Vic).

In Western Australia, there is no equivalent requirement for a vendor to give a direction to pay in the standard form contract. Instead, the agreed settlement statement usually contains the vendor's direction as to the manner of payment of money due at settlement — commonly referred to as the “cheque split”.

In South Australia, the agent will, on request, before settlement, release to the vendor’s solicitor or conveyancer the balance of the deposit money after deducting the amount of the agent's commission and disbursements. The amount of the agent's fees will be retained in the agent's trust account until settlement has taken place.

In Tasmania, there is no requirement for a vendor to give a formal direction to pay in the standard form contracts or any such practice. Instead, the vendor's lawyer will typically direct the manner of payment of money due at settlement. Standard practice is a single cheque made payable to the vendor's lawyer. Multiple cheques are becoming increasingly common.

See Direction to pay and order on agent.

In return for the payment of money, the vendor hands over the title documents. Title documents may also come from an outgoing mortgagee.

Note that, in South Australia, title documents are no longer required to be produced for any purpose.

See Documents of title.

The contract for sale of land determines the settlement venue. In New South Wales and Victoria, unless otherwise agreed, settlement will occur where the title documents are held — either at the vendor’s office or the outgoing mortgagee's office. In Queensland, if the seller has a registered mortgage over the property, settlement will usually take place at the mortgagee’s office (see cl 5.1(2) of the REIQ contract).

In Western Australia, the standard form contract provides that unless otherwise specified in the contract, the purchaser must specify the place for settlement.

In South Australia, settlements almost invariably occur in the settlement room at the Lands Titles Office in Adelaide, unless undertaken electronically through PEXA.

In Tasmania, by common practice, the venue for settlement is the location of the deeds. Some lenders fail to respect this convention.

In the Northern Territory, pursuant to cl 3.5 of the Law Society approved Contract of Sale and s 64(3)(c) of the Law of Property Act 2000 (NT), completion usually takes place at the Land Titles Office in Darwin or in Alice Springs (depending on the location of the property).

In the Australian Capital Territory, unless otherwise agreed to by the parties, settlement almost invariably occurs at the ACT Law Society settlement room. This is a dedicated settlements venue (room) where all solicitors, banks and agents attend to effect settlement.

See Venue.

In addition to those discussed above, other issues at settlement include:

• who attends;

• vacant possession or whether there is any legal or physical impediment to the purchaser obtaining the property;

• if the vendor is a trustee, how they should receive the purchase money; and

• from 1 July 2017, a 12.5% withholding obligation was imposed on purchasers of “taxable Australian real property” from certain foreign residents as well as “indirect Australian real property interests” and options to acquire interests. If the land or the interest in land is worth more than $750,000 the purchaser is to withhold 12.5% of the purchase prices and send it to the ATO. The Federal Government has indicated that from 1 July 2017, the prior withholding tax rate of 10% will apply and the value of the land or interest in land is $2 million. The obligation does not arise where the vendor has obtained a “clearance certificate” from the ATO and given it to the purchaser prior to settlement. Clause 31 of the New South Wales 2017 Contract for Sale of Land addresses this issue.

See Other issues at settlement.