From unconditional to settlement

Congratulations, your property is sold! Once the Sale and Purchase Agreement becomes “unconditional,” both you and the buyer are legally committed to completing the sale. This is a huge milestone, but there are still a few important steps to take before you hand over the keys. This guide explains what happens between going unconditional and the final settlement day, so you know exactly what to expect.

What does “unconditional” mean?

An agreement becomes unconditional when all the conditions listed in the Sale and Purchase Agreement have been met. For the buyer, this usually means they have secured their finance and are satisfied with their due diligence, such as the builder’s report and LIM report. Once the agreement is unconditional, neither party can back out of the sale without facing legal consequences.

The waiting period: what to do before settlement day

The time between the unconditional date and settlement day is typically a few weeks. This period gives both you and the buyer time to prepare for the move. Your main tasks during this time are logistical.

Stay in touch with your lawyer: Your solicitor or conveyancer will be preparing the legal documents to transfer ownership of the property. They will let you know if they need anything from you.
Book your movers: Moving companies can be booked up weeks in advance, especially at the end of the month. Book your movers as soon as you have a confirmed settlement date.
Arrange your final utility readings: Contact your power, gas, and internet providers to let them know your move-out date and arrange for final meter readings.
Start packing and cleaning: The property needs to be left in a clean and tidy condition. This is also the time to decide what you are taking and what you are leaving behind. Remember that all the chattels listed in the agreement must remain in the property.

The pre-settlement inspection

The buyer is entitled to a final inspection of the property, which usually takes place 24 to 48 hours before settlement day. The purpose of this inspection is for the buyer to check that the property is in the same condition as it was when they signed the agreement.

They will check two main things:

That there has been no new damage to the property since the agreement was signed.
That all the chattels included in the sale (like the oven, dishwasher, curtains, and light fittings) are still there and are in “working condition,” as required by the agreement.

If the buyer finds an issue, they must raise it with their lawyer, who will then contact your lawyer to find a solution before settlement proceeds.

What happens on settlement day?

Settlement day is when the legal ownership of the property officially transfers to the buyer. Most of this process is handled behind the scenes by the lawyers and banks.

The money is transferred: The buyer’s lawyer will receive the loan funds from their bank and transfer the full purchase price to your lawyer’s trust account.
Confirmation of payment: Your lawyer will confirm that they have received the full amount. Once this happens, the sale is complete.
Release of the keys: Your lawyer will then notify us, your real estate agent, that the settlement is complete and that we can release the keys to the new owner.

You must have fully moved out of the property before the settlement takes place, which is usually around midday. Once the keys are handed over, the property is no longer yours.

You’ve sold! What happens with the money?

Once your lawyer has received the funds, they will use them to pay off any mortgage you have on the property. They will also deduct their legal fees and pay the real estate commission to us. The remaining balance will then be transferred to your nominated bank account.

Need a hand with the final details?

The final stage of selling can feel like a rush of logistics and legal details. If you have any questions about what to expect or need help coordinating the final steps, our job isn’t over until you’re happily settled.

Call us today on (09) 626 6119 for a friendly, confidential chat.