You've signed the Contract – what happens next for buyers

You've found the place, signed the contract, and paid the deposit. It's a big moment – but it's also the start of a process that can feel like a black box if nobody explains what's going on. Between now and settlement day, there's a lot happening. Your lawyer or conveyancer can handle most of it for you, but it helps to understand the timeline and know when you need to take action.

Here's what to expect as a purchaser in Victoria.

The first few days: cooling-off periods and finance clauses

Do I have a cooling-off period?

If you bought by private sale, you have three business days to change your mind. You can withdraw during this time, though you'll forfeit 0.2% of the purchase price (not the whole deposit). If you bought at auction, there's no cooling-off period – the contract is immediately binding. Read more about cooling-off periods.

What about my finance clause?

If your contract includes a subject to finance condition this is your priority. You need to submit a formal loan application to your lender immediately – not just a pre-approval chat. The clock is ticking from the day you signed, and the finance deadline (typically 14 to 21 days) won't wait.

If your finance isn't approved by the deadline, your lawyer can issue a notice to terminate and recover your deposit. But you must follow the process precisely – miss the deadline or the notice requirements and you could lose that safety net entirely.

Initial steps: Your lawyer gets to work

Behind the scenes, your lawyer is busy. Here's what's typically happening in the early weeks:

Title and plan searches: your lawyer will confirm the vendor is the registered owner, check for any encumbrances (mortgages, caveats, easements), and verify that the title matches what was disclosed in the Section 32.

VOI: you'll be asked to complete a "verification of identity". Do this early. It's a quick process but it's a legal requirement, and leaving it late can delay settlement. At Nextstep Legal, we do this with an easy online form.

Lender coordination: if you're borrowing, your lawyer liaises with your lender to make sure the mortgage documents are being prepared and the loan will be ready to settle on time.

Approaching settlement: checks and preparations

Will I see a Statement of Adjustments?

Yes. Before settlement, your lawyer prepares the Statement of Adjustments, which is a document that calculates the final amount you owe at settlement. This isn't just the purchase price minus your deposit. It includes adjustments for council rates, water rates and owners corporation fees, split between you and the vendor based on the settlement date. The purpose is to ensure that each party pays for what they "use" – no more, no less.

Your lawyer will send this to you and explain the final figure so you know exactly how much to have available.

Do I need to arrange the settlement funds?

If you're borrowing, your lender provides most of the funds. But there's usually a gap between what the lender provides and the total settlement amount – this is called a shortfall amount. Your lender or broker will tell you exactly how much is needed and where to transfer it.

Tip: Make sure your bank's daily transfer limit is high enough to move the required funds in a single transaction. Increasing your transfer limit can take a business day or two, so don't leave it until the morning of settlement.

Should I do a pre-settlement inspection?

Yes, and you're entitled to one. The contract generally allows you to inspect the property in the days leading up to settlement to make sure it's in the same condition as when you signed. Your real estate agent will usually arrange this.

Look for any damage, missing fixtures (things that should stay with the property), or leftover belongings. If something's not right, tell your lawyer before settlement – it's much easier to resolve before the money changes hands.

Settlement day: what actually happens

Do I need to attend settlement?

No. Settlement in Victoria happens electronically through PEXA. Your lawyer logs into the PEXA workspace, confirms the figures, and digitally signs the documents. Funds are transferred electronically, stamp duty is paid, and the transfer of land is lodged with Land Use Victoria – all without anyone leaving their desk.

You'll get a call, email, or text from your lawyer once settlement is confirmed. This usually happens by early afternoon, though the exact time depends on how many transactions are being processed that day.

When do I get the keys?

Once your lawyer confirms settlement, the real estate agent will release the keys to you. This might happen within minutes of settlement or it might take an hour or two, depending on arrangements. After that, the property is yours.

What about stamp duty?

Stamp duty (officially called land transfer duty) is paid at settlement through PEXA. Your lawyer will help to calculate the duty, and it's drawn from the settlement funds. You don't need to separately pay the State Revenue Office – it's all handled electronically as part of the settlement process.

What if something goes wrong?

Settlement is delayed

Delays happen. The most common causes are lender delays (the bank isn't ready), missing documents, or issues discovered at the last minute. If the vendor causes the delay, you may be entitled to compensation. If the delay is on your side, the vendor may charge penalty interest.

Your lawyer will keep you informed and negotiate with the other side to resolve things as quickly as possible.

The vendor hasn't moved out

If the contract says vacant possession but the property isn't empty on settlement day, the vendor is in breach. Your lawyer can refuse to settle until the property is vacated.

How Nextstep Legal guides buyers

At Nextstep Legal, we manage the entire post-contract process for buyers – from title searches and requisitions through to PEXA settlement. We keep you updated at each stage, explain everything in plain English, and make sure there are no surprises on settlement day.

Just signed a contract? Talk to Nextstep Legal about your settlement, or send us the contract for a free review if you haven't signed yet.

This article provides general information about Victorian property law. It's not a substitute for legal advice on your specific situation. If you'd like to discuss your circumstances, get in touch.