Sold! A vendor's guide to what happens after signing

The contract is signed, the "sold" sticker is on the board, and you can finally exhale. But if you're a vendor selling property in Victoria, signing the contract is really just the starting line. There's a stretch of weeks (or months) between now and settlement where your lawyer is working behind the scenes to make sure everything lands smoothly.

Here are the questions vendors ask most often – answered without the jargon.

How long until settlement?

The settlement period is whatever you agreed to in the contract – typically 30, 60, or 90 days from the contract date. The most common is 60 days for residential sales, though 30-day settlements are increasingly popular, and 90 days or longer might be negotiated if the buyer needs time to arrange finance or to sell their own property.

Your lawyer will confirm the exact settlement date early in the process and keep you updated as it approaches.

What happens during the cooling-off period?

If the property was sold by private sale (not at auction), the buyer has a three business day cooling-off period after signing. During this time, they can withdraw from the contract – though they forfeit 0.2% of the purchase price if they do.

This can be nerve-wracking for vendors, and understandably so. The good news: most buyers don't cool off. If the cooling-off period passes without a notice, the contract is locked in.

Worth knowing: The cooling-off period doesn't apply if the sale was at auction, or within three clear business days before or after a publicly advertised auction.

Can I access the deposit before settlement?

You can ask. Under Section 27 of the Sale of Land Act 1962, your lawyer can serve a formal statement on the purchaser – known as a Section 27 Statement – setting out prescribed particulars including details of any mortgage over the property. The purchaser then has 28 days to respond. If they don't object within that period, the deposit is released to you (less any agent's commission and costs).

However, if the sale falls through after you've received the deposit, you may need to return it – plus interest. Your lawyer can advise whether an early release request makes sense in your situation and prepare the statement correctly. The process must follow the statutory requirements closely – Courts have confirmed that special conditions which try to shorten the 28-day period are void.

Do I need to do anything about rates and fees?

Yes, but your lawyer handles the heavy lifting. All outstanding council rates, water rates, and owners corporation fees must be paid up to date at settlement. Your lawyer will obtain the relevant notices and make sure these amounts are factored into the statement of adjustments.

If you've already paid rates for a period beyond the settlement date, you'll be credited for the overpayment through the adjustments.

What about my mortgage?

If you have an existing mortgage on the property, your lender needs to provide a discharge of mortgage at settlement. This is the document that removes the bank's security interest from the title so ownership can transfer cleanly to the buyer.

You'll need to contact your lender early – discharges can take 10 to 14 business days to arrange, and some lenders are slower.

Don't leave this until the last week. A delayed discharge is one of the most common causes of settlement hold-ups.

What's a VOI and why do I need one?

Your lawyer will ask you to complete a Verification of Identity (VOI). This is a formal identity check required before any documents can be lodged on the land titles register. It involves presenting original ID documents (passport, driver's licence, birth certificate) and can be done in-person (e.g., at your lawyer's office or at Australia Post) or online.

Do I need to be there on settlement day?

No. Settlement in Victoria happens electronically through PEXA. Your lawyer attends settlement digitally – you don't need to be at a particular place at a particular time. You'll get a notification once settlement has been completed, usually by early afternoon.

When do I need to move out?

Usually, the property must be completely vacant by settlement day. That means all your belongings, furniture, and rubbish must be removed. Leaving behind a garage full of boxes or a broken washing machine can create problems – the buyer is entitled to a clean, empty property.

Most vendors aim to move out a day or two before settlement to allow a buffer. If you need extra time, talk to your lawyer about negotiating a later settlement date or a short licence arrangement.

What happens with the keys?

Keys (and any remotes, security codes, or swipe cards) are typically handed over through the real estate agent on settlement day. Once your lawyer confirms settlement has occurred, the agent releases the keys to the buyer. Make sure you've gathered all copies of keys well before the day.

What if settlement is delayed?

Delays can happen – the buyer's lender might not be ready, or there could be an issue with a document. If the delay is on the buyer's side, you may be entitled to penalty interest for each day settlement is late. If the delay stretches beyond a reasonable period, your lawyer can issue a Notice to Default, giving the buyer 14 business days to settle or face termination of the contract.

If the delay is on your side (for example, your discharge isn't ready), the same rules apply in reverse. This is why early preparation matters.

When do I get paid?

Settlement funds are transferred electronically through PEXA. Once settlement is complete, your lawyer disburses the proceeds – paying out your mortgage (if any), deducting legal fees and disbursements, and transferring the balance to your nominated bank account. Funds typically arrive in your account on the same day as settlement or the next business day.

How Nextstep Legal supports vendors

At Nextstep Legal, we guide vendors through every step from contract to settlement. We handle the discharge coordination, rate adjustments, PEXA lodgement, and everything in between – keeping you informed without overwhelming you with detail.

Selling a property in Victoria? Get a quote from Nextstep Legal and we'll take care of the legal side so you can focus on what comes next.

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.