Frequently Asked Questions

It ensures all financial adjustments are correct before settlement, including purchase price, deposits, and outgoings such as rates and water usage.

The statement is prepared by the legal representatives or conveyancers handling the property transaction.

The date on which ownership of the property is legally transferred from the seller to the buyer.

A Settlement Statement is a document outlining the financial adjustments and payments required to finalise a property transaction.

The date from which financial adjustments (e.g., rates, water, and levies) are calculated between the buyer and the seller. This is usually the settlement date however it can be adjusted if agreed upon for example if agreed the adjustment date to be at the original settlement date if extended or the date early possession occurred.

The date when both parties signed and agreed to the terms of the contract for the property sale.

It means that the settlement process is completed online through a platform like PEXA, rather than in-person.

The deposit is paid upfront as part of the purchase price and usually held in the real estate trust account, reducing the balance payable at settlement. At settlement the deposit forms part of the payment to the seller. If the real estate agent is the deposit holder the deposit will form part of the payment of the commission. If there are funds to be left over post settlement please contact the deposit holder to provide details on where to release these funds.

Any overpayment is refunded to the relevant party, while an underpayment could delay settlement. An underpayment could also put you in breach of contract terms and you could be liable to pay compensation or have the contract terminated.

Since rates are paid in advance, adjustments ensure the seller only pays for their period of ownership, and the buyer covers the remainder.

The total rates bill (less any water consumption and discounts) is divided by the number of days in the billing period, then multiplied by the number of days the seller owned the property.

All payments are processed electronically at the scheduled settlement time however can occur anytime before 4pm on any given day. Times nominated are for a convenience only and does not mean they will definitely occur at this time.

Any discrepancies should be corrected before settlement. Your conveyancer should be notified immediately.

Settlement may be delayed due to unresolved financial, legal, or banking issues. Your conveyancer will work to resolve any problems.

Ensure all required payments are made, documents are signed, and your conveyancer has the necessary information to process the settlement.

In Queensland, properties must meet smoke alarm compliance laws before settlement. If the seller hasn’t arranged compliance, a pre-agreed amount is deducted from their proceeds to cover the cost, ensuring the buyer can make the necessary upgrades.

Under the Foreign Resident Capital Gains Withholding (FRCGW) scheme, buyers must withhold 15% of the purchase price for properties unless the seller provides an ATO Clearance Certificate proving Australian residency. This amount is paid directly to the ATO at settlement.

A price reduction on your settlement statement can occur for several reasons, including:

• Negotiated Adjustments: The buyer and seller may have agreed to a price adjustment due to issues found during inspections or other negotiations.
• Rates & Adjustments: Council rates, water charges, or strata levies may have been adjusted based on usage or outstanding amounts.
• Deposit or Credits Applied: If the buyer has paid a deposit or received credits from the seller (such as for repairs or incentives), these may appear as a reduction.
• Conveyancing or Legal Adjustments: Certain legal fees, rebates, or corrections may have been applied, affecting the final amount.

Adjustments on your settlement statement ensure that costs related to the property are fairly distributed between the buyer and seller. These adjustments can be either:

• “Plus” Adjustments (Payable by the Buyer): If the seller has pre-paid expenses like council rates, water charges, or strata levies beyond the settlement date, the buyer reimburses the seller for their portion.
• “Less” Adjustments (Deducted from the Seller): If there are outstanding amounts owing on the property, such as unpaid rates or water charges, these are deducted from the seller’s proceeds at settlement to ensure they are cleared.

It refers to the number of days in the current quarter that the seller is responsible for paying.

Water usage is charged based on consumption, so the seller pays for their usage up to settlement, and the buyer takes over from that point.

The average daily usage (kL per day) is multiplied by the number of days from the last payment to settlement, then multiplied by the water charge rate.

Water utilities charge based on how much water a property consumes, measured in kilolitres (1,000 litres).

The buyer reimburses the seller for any unused portion of prepaid water bills.

To ensure fairness and accuracy, all kilolitre (kL) calculations are rounded to three decimal places.

This is a fee charged by the seller’s bank to remove the existing mortgage from the property title.

The handling of deposits prior to settlement varies based on the terms outlined in the contract. It’s crucial to refer to the specific terms and conditions in your contract. Unless there is a specific agreement, generally, the deposit is held in trust and released at settlement or post-settlement if it is held in the real estate trust account.

The seller is responsible for paying this fee to their lender at settlement. This may form part of the settlement fee as a “less adjustment” as it is taken off the amount owed to the seller at settlement.

If the seller does not have a mortgage registered to the title, no mortgage release fee applies.

This section lists payments to be made at settlement out of the sellers payments, including council rates, conveyancing fees, and any other outstanding amounts.

This represents an electronic funds transfer processed through the PEXA settlement platform.

It indicates that the final payment amount will be confirmed closer to settlement.

This is for outstanding or prepaid council rates that need to be settled before ownership transfers.

Certain payments may not have been finalised or allocated yet, and details will be updated before settlement.