Selling a property is a significant event, and it’s natural to wonder: how long after house settlement do I get paid? Generally, sellers can expect to receive their payment on the same day as settlement or within 24 hours.
However, this timeline can vary based on factors like your bank’s processing speed and any unexpected issues that may arise.
In this article, we’ll explain when and how you’ll receive your proceeds after settlement, what to expect during the process, and the potential factors that could cause delays. By understanding these steps, you can feel confident and prepared for a smooth transaction.
I. When Will I Receive the Proceeds After Settlement?
Settlement is the official moment when ownership of the property transfers from you to the buyer. This is the day when the buyer pays the remaining purchase price, and your mortgage, if any, is paid off.
Once these payments are confirmed, the remaining funds are released to you.Typically, the funds are transferred via Electronic Funds Transfer (EFT), which is a fast and secure way to receive your money.
However, keep in mind that while the payment may be processed on the same day, it could take a few hours or even up to one business day to appear in your bank account, depending on your financial institution.
Quick Tip:
If receiving your money on the same day is important, discuss this with your conveyancer early in the process to ensure they are aware of your expectations.
Also Read: Understanding What is Settlement in Real Estate: A Comprehensive Guide
II. How Is the Settlement Payment Processed in Australia?
In Australia, the property settlement process has become faster and more efficient due to digital platforms. Most settlements are now completed online, which means the process is usually smooth and quick.
Here’s a simplified step-by-step overview of how the settlement payment is processed:
Preparation by Your Conveyancer: Before the settlement date, your conveyancer will prepare all the necessary documents and confirm the final payment details with all parties involved, including your bank (if you have a mortgage).
Confirmation of Payments: On settlement day, the buyer’s funds are transferred electronically to pay off your existing mortgage (if applicable) and cover any outstanding costs like council rates or strata fees.
Distribution of Remaining Funds: After these payments, the remaining amount — known as the net proceeds — is transferred to your nominated bank account.
Final Checks: Your conveyancer will ensure all payments are correctly made and that the property title has been successfully transferred before confirming the transaction is complete.
Overall, the use of online settlement platforms has reduced delays, allowing sellers to receive their funds more quickly than in the past.
III. What Factors Can Delay My Payment After Settlement?
While most settlements proceed smoothly, there are a few factors that can delay when you get paid. Here are the common reasons why your payment might be held up:
Bank Processing Times: Different banks have varying processing times, and payments made later in the afternoon may not appear in your account until the next business day.
Errors in Bank Details: If there is a mistake in your bank account information, this can cause delays. Always double-check the account details you provide to your conveyancer.
Outstanding Debts on the Property: If there are unpaid council rates, water bills, or strata fees, these need to be settled before the net proceeds can be released to you.
Unexpected Issues on Settlement Day: Sometimes, there might be last-minute issues with the buyer’s financing or problems with the property title. In these cases, the settlement may be postponed until the issues are resolved.
Public Holidays or Weekends: If the settlement date falls on a Friday or before a public holiday, this may delay the payment reaching your account until the next business day.
Pro Tip: Communicate with your conveyancer throughout the process and make sure all documents and details are provided accurately to minimise the risk of delays.
IV. What Should I Expect on Settlement Day?
Settlement day is a significant milestone, but the actual process is relatively straightforward. Most of the hard work is done behind the scenes by your conveyancer, so you won’t need to do much on the day itself.
Here’s what happens on settlement day:
Final Inspection (if requested): The buyer may perform a final inspection of the property to ensure it is in the agreed-upon condition.
Document Exchange: Your conveyancer and the buyer’s conveyancer will exchange documents, including the transfer of title and payment confirmation.
Payment of Outstanding Debts: Any outstanding debts, such as your mortgage, will be paid off from the sale proceeds.
Transfer of Funds: The remaining balance after debts and fees have been paid will be transferred to your nominated bank account.
Notification of Completion: Once everything is finalised, your conveyancer will notify you that the settlement is complete, and you will officially no longer own the property.
The entire process usually takes one to two hours, but you won’t need to attend. Your conveyancer handles everything, making it a smooth experience.
Also Read: A Comprehensive Overview of Property Title Transfer in QLD
V. Can I Access My Funds on the Same Day as Settlement?
Yes, in many cases, you can access your funds on the same day as settlement. However, this is not guaranteed due to bank processing times.
If the settlement is completed early in the day, there’s a good chance the funds will appear in your account by the afternoon.
Keep in mind the following points:
Cut-off Times: Most banks have cut-off times for processing payments. If the settlement happens after this time, your funds might not appear until the next business day.
Instant Transfers: Some banks now offer instant transfers through the New Payments Platform (NPP), which can speed up the process. Check with your bank if they support this feature.
If same-day access to funds is critical for you, discuss this with your conveyancer well in advance. They may be able to schedule an early morning settlement or use a bank that processes payments faster.
Important Reminder:
The exact time you receive your funds may vary, so it’s wise not to make any significant financial commitments or purchases until you see the money in your account.
Smooth Sailing Ahead
Selling a property can be stressful, but understanding how long after house settlement you get paid can give you peace of mind. In most cases, sellers receive their payment on the same day or within 24 hours of settlement.
By working closely with your conveyancer and ensuring all documents are in order, you can help speed up the process and enjoy your proceeds without unnecessary delays.
Contact CJC Law for Expert Guidance
At CJC Law, we specialise in smooth, stress-free property settlements. Our experienced team will guide you every step of the way, ensuring you receive your funds promptly.
Contact us today for a consultation and let us handle your settlement with care and expertise.
