How long does settlement take in NSW and what happens on settlement day?
Key facts
| Fact | Detail | Source |
|---|---|---|
| Default settlement date | The 42nd day after the contract date under the standard contract (2022 and 2026 editions), unless agreed otherwise | Contract for the sale and purchase of land 2026 edition (sample) |
| Typical timing | Generally around 6 weeks after exchange | Exchanging contracts and settlement when buying a home |
| Electronic settlement | All NSW land dealings must be lodged electronically since 11 October 2021 | 100% eConveyancing from 11 October |
| Approved operators (ELNOs) in NSW | PEXA and Sympli | Electronic Lodgment Network Operators |
| Transfer duty deadline | The earlier of settlement or 3 months after the contract date | Who pays transfer duty and when |
| Foreign resident withholding | 15% of the price unless the seller gives an ATO clearance certificate; no value threshold for contracts from 1 January 2025 | Foreign resident capital gains withholding overview |
| ATO clearance certificate | Free online application; valid 12 months; processing can take up to 28 days | Australian residents and clearance certificates |
| GST withholding (new homes) | 1/11th of the contract price, or 7% under the margin scheme, paid to the ATO at settlement | GST at settlement: a guide for purchasers and their representatives |
How long does settlement take in NSW?
Under the standard Contract for the sale and purchase of land, settlement (called completion in the contract) is due on the 42nd day after the contract date, unless the parties agree a different date. NSW Government guidance says settlement generally takes place around 6 weeks after exchange.
Both the 2022 edition and the 2026 edition of the standard contract use this default. The 2026 edition replaced the 2022 edition, which was withdrawn from sale on 13 March 2026.
The period can be changed by agreement, for example to fit a buyer's finance or a seller's next purchase. Off-the-plan purchases work differently, because settlement depends on the plan being registered.
| Type of purchase | Settlement timing |
|---|---|
| Existing home on the standard contract (private sale or auction) | The 42nd day after the contract date, unless the parties agree otherwise |
| Off the plan | After the plan is registered; you cannot be required to settle within 21 days of receiving the registered plan and documents |
Sources: Contract for the sale and purchase of land 2026 edition (sample); Exchanging contracts and settlement when buying a home; Summary of main changes made in the Contract for the sale and purchase of land 2026 edition; Buying property off the plan
Is settlement done electronically in NSW?
Yes. Since 11 October 2021, all NSW land dealings, caveats and priority notices must be lodged electronically, and paper certificates of title were cancelled.
Settlement runs through an Electronic Lodgment Network Operator (ELNO). The approved ELNOs in NSW are PEXA (Property Exchange Australia) and Sympli, so PEXA is not the only option.
Only a subscriber, such as a solicitor, a licensed conveyancer or a bank, can lodge through an ELNO. Your solicitor or conveyancer must have your written authorisation and must verify your identity.
Sources: 100% eConveyancing from 11 October; 100% eConveyancing in NSW; Electronic Lodgment Network Operators
What does the buyer need to do before settlement?
The buyer needs finance, transfer duty and the final figures sorted before the settlement date. These are the usual steps:
- Finalise your finance – Give your solicitor or conveyancer your lender's details early, and make sure the loan will be ready for the settlement date.
- Pay transfer duty on time – Transfer duty is paid by the buyer by the earlier of settlement or 3 months after the contract date. Late payment attracts daily interest and possibly penalty tax.
- Check the settlement adjustments – Council and water rates are generally apportioned between buyer and seller to the settlement date as settlement adjustments, which changes the final amount you pay.
- Inspect the property – Some contracts allow the buyer a final inspection, usually on or just before settlement day, to check the property is in the same condition as at exchange. Check whether your contract gives you this right.
- Check for GST withholding on a new home – If you are buying new residential premises, the seller's written notice tells you whether you must pay part of the price to the ATO at settlement.
Sources: Who pays transfer duty and when; Exchanging contracts and settlement when buying a home; GST at settlement: a guide for purchasers and their representatives
What does the seller need to do before settlement?
The seller needs tax clearances and any mortgage discharge arranged before settlement, and leaving them late can hold settlement up.
For contracts from 1 January 2025, foreign resident capital gains withholding is 15% and applies to property of any value. An Australian-resident seller must give the buyer an ATO clearance certificate at or before settlement, or the buyer must withhold 15% of the price and pay it to the ATO. The ATO advises applying as soon as you decide to sell.
| Item | What it is | Timing |
|---|---|---|
| ATO clearance certificate | Confirms the seller is an Australian resident, so the buyer does not withhold 15% of the price. Each seller needs their own certificate. | Valid for 12 months from issue; processing can take up to 28 days, so apply early |
| GST withholding notice (all residential sales; withholding applies only to new residential premises or potential residential land) | The seller's written notice saying whether GST withholding applies; if it does, the buyer pays 1/11th of the price, or 7% under the margin scheme, to the ATO | Withheld amount is paid to the ATO at settlement |
| Land tax clearance certificate | A section 47 certificate under the Land Tax Management Act 1956 that protects the buyer, because unpaid land tax is a first charge on the land | Revenue NSW says the seller should provide a current one at least 14 days before settlement |
| Discharge of mortgage | The seller's lender prepares and lodges the discharge electronically to remove its mortgage from the title; the seller usually signs the lender's discharge authority | Lender processing times vary, so start early |
Sources: Foreign resident capital gains withholding overview; Australian residents and clearance certificates; GST at settlement: a guide for purchasers and their representatives; Understand land tax clearance; How do I discharge a mortgage?
What happens on settlement day?
On settlement day, the money changes hands and the documents are lodged electronically through the ELNO. You do not need to attend; your representative tells you once settlement is complete.
There is no paper certificate of title to hand over, because paper certificates of title were cancelled from 11 October 2021.
- Figures and documents are finalised – The buyer's and seller's representatives, and any lenders, agree the settlement figures and sign the documents in a shared electronic workspace.
- Funds are exchanged – At the settlement time, the buyer's funds and any loan are paid electronically to the seller, the seller's lender and anyone else in the settlement figures.
- Documents are lodged – The transfer, any discharge of the seller's mortgage and any new mortgage for the buyer are lodged electronically with NSW Land Registry Services.
- Keys are released – Once settlement is confirmed, the selling agent releases the keys under its own arrangements. Ask the agent beforehand how and where to collect them.
Sources: 100% eConveyancing in NSW; 100% eConveyancing from 11 October; How do I discharge a mortgage?
What can delay settlement in NSW?
Settlement can be delayed when finance, documents or funds are not ready on the day. If settlement does not happen on the due date, the contract terms decide what happens next, so speak with your solicitor or conveyancer straight away.
Build some flexibility into removal and lease plans in case settlement moves. Common causes of delay include:
- the buyer's loan not being ready, or a shortfall in funds after adjustments
- the seller's ATO clearance certificate not arriving in time
- the seller's lender not being ready to discharge the mortgage
- an unresolved land tax clearance
- mistakes or late changes to settlement figures or documents in the electronic workspace
- a linked sale or purchase that has to settle at the same time
- a technical or banking problem on the day
Sources: Australian residents and clearance certificates; How do I discharge a mortgage?; Understand land tax clearance
How a conveyancing solicitor can help
A conveyancing solicitor can review the contract before exchange, check the settlement date and adjustments, and coordinate the electronic settlement with the other side and the lenders. To discuss your purchase or sale, send us the contract or call (02) 9000 1408.
Frequently asked questions
How long after exchange is settlement in NSW?
Under the standard NSW Contract for the sale and purchase of land, settlement is due on the 42nd day after the contract date unless the buyer and seller agree otherwise. NSW Government guidance says settlement generally happens around 6 weeks after exchange. Check the completion date in your own contract, because it can be changed by agreement.
Can settlement be shorter or longer than 42 days?
Yes. The 42-day period is only the default in the standard contract, and the buyer and seller can agree a different settlement date, for example to suit finance or a linked sale. Off-the-plan contracts are different: you cannot be required to settle within 21 days of receiving the registered plan and documents.
Is PEXA mandatory in NSW?
Electronic lodgment is mandatory, but PEXA is not the only platform. Since 11 October 2021, NSW land dealings must be lodged electronically through an Electronic Lodgment Network Operator. The approved operators in NSW are PEXA and Sympli.
Do I need to attend settlement in NSW?
No. NSW settlements happen electronically between the buyer's and seller's representatives and their lenders, through an approved operator such as PEXA or Sympli. Your solicitor or conveyancer tells you when settlement is complete, and the selling agent then releases the keys under its own arrangements.
Does a seller need an ATO clearance certificate for every sale?
In practice, yes. For contracts from 1 January 2025, foreign resident capital gains withholding is 15% with no property-value threshold. An Australian-resident seller must give the buyer a clearance certificate at or before settlement, or the buyer must withhold 15% of the price and pay it to the ATO. The certificate is valid for 12 months, and processing can take up to 28 days.
What happens if settlement is delayed in NSW?
Settlement can be delayed when finance, documents or funds are not ready on the day, for example if the buyer's loan is not ready, the seller's ATO clearance certificate has not arrived or the seller's lender is not ready to discharge the mortgage. If settlement does not happen on the due date, the contract terms decide what happens next, so speak with your solicitor or conveyancer straight away.
When do I get the keys after settlement?
Keys are released by the selling agent after settlement is confirmed. Each agency has its own arrangements, so ask the agent before settlement day how and where you can collect them. Your solicitor or conveyancer will let you know once settlement has gone through.
Sources
- Contract for the sale and purchase of land 2026 edition (sample) – The Law Society of NSW
- Summary of main changes made in the Contract for the sale and purchase of land 2026 edition – The Law Society of NSW
- Exchanging contracts and settlement when buying a home – NSW Government
- 100% eConveyancing from 11 October – NSW Registrar General
- 100% eConveyancing in NSW – NSW Registrar General
- Electronic Lodgment Network Operators – Australian Registrars' National Electronic Conveyancing Council (ARNECC)
- Who pays transfer duty and when – Revenue NSW
- Foreign resident capital gains withholding overview – Australian Taxation Office
- Australian residents and clearance certificates – Australian Taxation Office
- GST at settlement: a guide for purchasers and their representatives – Australian Taxation Office
- Understand land tax clearance – Revenue NSW
- How do I discharge a mortgage? – NSW Land Registry Services (Registrar General's Guidelines)
- Buying property off the plan – NSW Government
Related pages
Related services
Related guides
- The conveyancing process in NSW, step by step
- NSW stamp duty (transfer duty): 2026-27 rates, examples and when it is due
- Selling property in NSW: what sellers need to do, step by step
- Buying off the plan in NSW: your rights before and after you sign
- The cooling-off period in NSW: how it works for property buyers
Local pages
This guide is general information about New South Wales law as at 4 October 2026, not legal advice for your circumstances. Laws, thresholds and government fees change; check the official sources listed and contact us for advice about your matter.
Talk to us about your matter: call (02) 9000 1408, email info@baulkhamhillsconveyancing.com.au or request a quote online.