How Long After House Settlement Do I Get Paid

When Will Your Funds Arrive? 

How long after house settlement do I get paid for my property in Queensland? this is a pressing concern if you are looking to sell your house. Selling a home is both an exciting and nerve-wracking experience, and while the prospect of moving on to new opportunities is thrilling, the process comes with many financial and logistical considerations. 

Understanding the settlement process is crucial for financial planning if you’re purchasing another home, paying off debts, or managing other expenses. This article will walk you through the timeline of receiving funds after settlement and the factors that could impact the payment process. 

Property settlement is the final step in a real estate transaction, transferring ownership from seller to buyer. This complex process requires coordination between conveyancers, financial institutions, government authorities, and sometimes real estate agents. 

Critically, it involves the transfer of funds from the buyer into your account, ensuring the agreed purchase price is paid. This occurs after all legal documents are finalised. Buyer funds, including mortgages, are transferred electronically or via cheque. 

Shared expenses like rates are adjusted and paid simultaneously. Conveyancers manage these transactions, ensuring accuracy before ownership transfer. Both parties receive detailed settlement statements outlining all financial details. 

How Long After House Settlement Do I Get Paid 

Here are some of the factors that impact how quickly you receive your payment after settlement: 

Location 

Different states and territories have varying regulations and processing times. PEXA (Property Exchange Australia) is an online platform that enables fast, digital property settlements and facilitates near-instantaneous transfer of funds between institutions. It’s also by far one of the most popular ways to transfer funds for property settlement. 

PEXA facilitates real-time electronic fund transfers and document submissions, which significantly reduces delays. This system ensures that payments are securely processed without the need for physical bank visits or manual paperwork exchanges.  

However, allow 1-2 business days for your bank to process and clear the funds in your account. While some banks might process it the same day, it is not guaranteed. 

In some areas, digital settlement is the norm, while others may still rely on manual processes, which take longer. In Queensland, PEXA digital settlements are widely used, allowing for faster fund transfers. However, if a manual settlement occurs, it may involve physical cheques, which can significantly delay the process. Allow 5-10 business days, or even more, for funds to clear due to cheque clearing processes and inter-bank transfers 

Type of property sale 

The type of sale can influence the overall settlement period, which, in turn, affects when payments are disbursed. 

• Private Sales: Standard settlement periods are often 30-90 days from the date of contract exchange, but this is negotiable. Payment occurs at the end of this period. 
• Auctions: Auctions are competitive sales where properties are sold to the highest bidder. These typically have shorter settlement periods, often 30-60 days. Payment is due on the settlement date. 
• Commercial Properties: Commercial transactions can have highly variable settlement periods. It could be anywhere from 30 days to several months. Payment timelines are defined in the contract. 

Verification procedures 

Banks have varying security checks, especially for large transactions. 

• Standard Verification: Most transactions will involve standard bank checks, which are usually processed within 1-2 business days after receiving funds from PEXA or clearing a cheque. 
• Enhanced Verification: For very large sums, banks may conduct more thorough checks, so expect the payment to arrive in 3-4 business days. Provide all necessary documentation upfront to minimise delays. 

Documentation errors 

Incorrect bank details or missing paperwork are a common cause of delays. 

• Minor Errors (e.g., typo): These can typically be rectified within 1-2 business days, but it requires prompt communication and cooperation from all parties. 
• Major Errors (e.g., incorrect account): These can cause more significant delays, potentially adding several business days as funds may need to be recalled and re-sent. 

Public holidays and weekends 

How long after house settlement do I get paid if there are holidays? 

Payments are processed on business days only, expect delays in your payment during holidays 

If the settlement falls on a Friday, funds might not be available until the following Monday or Tuesday. If the settlement falls near a public holiday, this can add extra business days to the processing time. 

Third-Party Delays 

Involvement of multiple parties can introduce delays. 

• Mortgage Lenders: Delays in mortgage funding can hold up the entire settlement, which, in turn, delays payment to the seller. This is usually resolved within a few days once the lender is ready. 
• Strata Management: Obtaining necessary strata certificates or information can sometimes cause delays, though usually resolved within a week or two. 

For PEXA transactions, while funds transfer quickly between institutions, allow 1-2 business days for your bank to process the payment, as same-day processing is rare. 

Non-PEXA transactions, involving physical cheques, typically take much longer, usually 3 business days or more, and up to 10 days if mailed through Australia Post. It’s essential to contact your bank and conveyancer for a personalised estimate, as these timeframes are subject to various factors. Always plan for the longer timeframe to avoid any unexpected delays. 

Breakdown of the Payment Process 

Before funds are released to you, there are specific steps that must be completed: 

Step 1: Exchanging legal documents 

The settlement process starts with the buyer’s and seller’s conveyancers exchanging legal documents. These documents confirm the details of the sale and ensure all conditions have been met, so that they prevent any misunderstandings or disputes regarding the terms of the sale. 

Meanwhile, the buyer’s lender confirms that the necessary funds are available for the transaction. If any issues arise in this stage, such as missing paperwork or incorrect banking details, it could delay the entire process. 

Step 2: Transfer funds via secure channels 

Modern property settlements often utilise online platforms like PEXA for fast, digital transactions. While these platforms are common in Australia, the underlying process involves a secure transfer of funds from the buyer’s account into yours. 

This can be done electronically, but other secure methods, including traditional bank transfers, may also be used depending on the specific circumstances and parties involved. 

Step 3: Clear debts and liabilities 

How long after house settlement do I get paid if I have debts or other liabilities? 

You do not automatically receive the payment once the funds are transferred. Before the payment pushes through, outstanding property-related expenses must be cleared. This includes: 

• Mortgage discharge fees (if applicable): These are fees associated with paying off an existing mortgage on the property. 
• Council rates and land tax: Any unpaid council rates or land taxes must be settled before the transfer of ownership. These charges are typically prorated based on the settlement date, which means you may be responsible for a portion of the outstanding balance. 
• Utility bills or body corporate fees: Electricity, water, gas, and other utilities must be paid up to the settlement date. For apartments or units in managed buildings, body corporate fees must also be cleared to ensure a smooth handover. 
• Legal and conveyancing fees: While not a direct property debt, you should account for the costs of hiring a conveyancer or lawyer to handle the settlement process. 
• Agent commission and marketing costs: If a real estate agent was involved in the sale, their commission and any agreed-upon marketing costs will need to be paid before the final funds are released to you. 

Any delays in settling these debts pushes back fund release. Ensure all accounts related to the property are up to date and verify with their financial institutions that all obligations have been met before settlement day. 

Step 4: Transfer ownership 

Once the legal and financial components are finalised, the buyer is officially registered as the new owner. At this stage, the transaction is legally complete, so the final payment is ready for processing. Government agencies and property registries must update their records, which takes additional time. 

Step 5: Process final payment 

Final payment processing involves confirming settlement, instructing the buyer’s bank to release funds, transferring the funds electronically or via traditional bank transfer, clearing and verifying the payment into your bank, crediting your account, and notifying both you and the buyer. Electronic transfers via PEXA, for example, are typically faster. 

However, manual transactions or delays caused by bank processing times extend the timeline to 3-7 business days, as they require physical bank processing and document exchanges. Additionally, large transactions may be subject to internal bank verification procedures, which can also affect the timing of the final payment. 

How Does Payment Work for Off-the-Plan Sales? 

Off-the-plan sales involve purchasing a property that has yet to be built. These are condominium units in high-rise buildings that are still being built, houses in subdivisions that are yet to be constructed, and even commercial properties in a new development area. 

With these types of arrangements, settlement occur months or even years after signing the contract. Buyers should be aware that final payments may be subject to construction delays and changing market conditions. Deposits are typically held in a trust account until settlement, at which point the full payment process begins. 

Sellers in off-the-plan transactions must also consider: 

• Stage payments: Some developers may require staged payments at different phases of construction, which impacts when the final settlement occurs. 
• Changes in market conditions: If property values increase or decrease significantly before settlement, buyers may face financing difficulties, which could lead to delays. 
• Contractual adjustments: Some contracts allow developers to make changes to settlement dates, so it’s important to review agreements carefully. 

How Long After House Settlement Do I Get Paid Frequently Asked Questions (FAQs)

How long after house settlement do I get paid if I go through an online channel like PEXA? 

PEXA processes the financial settlement quickly, often within minutes of the scheduled settlement time. Funds are then transferred to the relevant bank accounts. However, the time it takes for the funds to clear and be available depends on your bank’s processing times.  

PEXA recommends allowing up to 3 business days for funds to clear after settlement. If you haven’t received your funds after 3 business days, it’s best to contact your bank or PEXA support to investigate.    

What are adjustments, and how long after house settlement do I get paid if these are applicable? 

Adjustments are calculations of shared expenses between the buyer and seller, typically relating to council rates, water rates, and strata fees (if applicable). These are calculated proportionally based on the period of ownership before and after settlement. 

For example, if you already paid the full year’s council rates, the buyer will reimburse you or the portion covering the period after settlement. These adjustments are finalised and paid at settlement. 

How long after house settlement do I get paid and is there a way to get my funds released faster? 

No, there is no way to get your funds faster. If you’re using online channels like PEXA, the process is automated and designed for efficiency. The main factor affecting the speed of receiving funds is your bank’s processing time. 

Speeding up the process with traditional settlements is more challenging. Discuss using a bank cheque or a direct deposit with the other party’s lawyer, but this is subject to their agreement. Clear communication and coordination between all parties are crucial before the payments are finalised, especially if you want to receive your payment faster. 

What happens if my payment is delayed, how long after house settlement do I get paid then? 

If your payment is delayed, the first step is to contact your bank to check if there are any issues on their end. If your bank confirms everything is fine, contact PEXA support. They investigate the settlement details and identify any potential problems. It’s crucial to act quickly if you suspect a payment issue. Depending on the case, your payment might get delayed another 3-7 days, but acting on suspected problems helps ensure they are resolved promptly. 

Key Takeaways for a Hassle-Free Home Settlement 

Most sellers receive their funds on the same day as settlement, but careful planning is essential to ensure everything proceeds smoothly. Working closely with an experienced conveyancer who understands the intricacies of property transactions helps you prevent potential setbacks. As a seller, you should also double-check all documentation, including legal paperwork and banking details, to avoid errors that could lead to delays. 

Being proactive in addressing potential obstacles significantly reduces the risk of complications. If any problems arise during the settlement process, contact us immediately so we can help you resolve your problems before they escalate into major delays.