A Day That Runs on Bank Timing, Not the Clock
Settlement day is when ownership of the property legally transfers from seller to buyer, and it runs on a fairly predictable sequence — even though the exact timing shifts depending on the banks and law firms involved. In the morning, the vendor's lawyer receives a final repayment statement from the vendor's bank, confirming exactly how much is owed to clear the mortgage. This figure can't usually be confirmed until settlement morning itself, because interest accrues right up to that date.
From there, the vendor's lawyer sends a formal undertaking to the purchaser's lawyer: essentially, "once you pay us, we'll release the keys and register the new owner." The purchaser's bank then confirms funds have been paid to their lawyer's trust account, and once everything is in place, payment is made via same-day cleared online banking — a transfer that can't be reversed or cancelled.
The Sequence, Step by Step
A typical settlement day, roughly in order.
Morning: repayment statement confirmed
The vendor's bank confirms the exact payout figure to clear their mortgage.
Mid-morning: purchaser's funds move
The purchaser's bank confirms the loan has been paid to their lawyer's trust account.
Midday: payment made
The purchaser's lawyer makes a same-day cleared payment to the vendor's lawyer.
Early afternoon: keys released
Once payment is confirmed, the agent is told to release the keys to the purchaser.
Lawyers
Banks
Real Estate Agent
Under the standard contract, settlement must be completed by 4:00pm — otherwise it's pushed to the next working day, and penalty interest can apply.
Quick Summary
- Settlement runs on a set sequence: repayment statement, funds transfer, payment, then keys.
- It usually happens around lunchtime, but timing varies by bank and law firm.
- The hard deadline is 4:00pm — miss it, and it rolls to the next working day.