Understanding When You Get Paid After Selling Your Home
One of the first questions that comes up when selling property is a simple but important one: when does the money actually land in your account?
The short answer is settlement day — but there's more to the process than that, including how the deposit is handled, how your mortgage affects proceedings, and what gets deducted before you receive the final proceeds. Having the right real estate agent and conveyancer on your side makes the entire process significantly smoother.
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How Does Property Settlement Work in Australia?
In Australia, the property settlement process is the legal and financial transfer of ownership from seller to buyer. It's coordinated between your conveyancer or solicitor, the buyer's legal representative, and — where applicable — both parties' lenders.
Here's how the process typically unfolds from sale to settlement:
- Contract of Sale signed — Both parties sign, and the buyer pays an initial deposit (typically 5–10% of the purchase price)
- Deposit held in trust — The deposit is usually held in a trust account by the real estate agent until settlement
- Settlement period — The time between signing and settlement is agreed in the Contract of Sale, commonly 30–90 days
- Settlement day — The buyer pays the remaining balance, ownership is legally transferred, and you receive the full proceeds of the sale (less any deductions)
- Funds released — Your conveyancer or solicitor transfers the net proceeds to you, typically the same day or within one business day
When Do You Actually Receive the Money?
In most cases, the full proceeds of the sale are paid to you on settlement day. The buyer pays the outstanding balance to complete the purchase, and once all legal and financial conditions are satisfied, the funds are transferred to your nominated account.
However, the amount you receive won't necessarily be the full sale price. Common deductions processed at settlement include:
- Mortgage discharge — If you have an existing mortgage, the outstanding loan balance is paid directly to your lender from the proceeds before you receive anything
- Real estate agent commission — Your agent's agreed commission fee is deducted from the sale proceeds at settlement
- Conveyancing fees — Your solicitor or conveyancer's fees are settled from the proceeds
- Council and water rates adjustments — Pre-paid rates are adjusted between buyer and seller at settlement
- Outstanding duties or levies — Any owing amounts are cleared before final disbursement
What you receive is the net proceeds — the sale price minus all of the above.
Can You Access the Deposit Before Settlement?
Yes — in some circumstances it's possible to have the deposit released before settlement day, but it requires agreement from the buyer and careful handling by your legal representative.
Requesting an Early Release of the Deposit
If you wish to access the deposit before settlement, the best approach is to raise this as early as possible in the process — ideally when you first engage your conveyancer or solicitor. This gives them time to prepare the necessary legal documentation, which can then be served to the buyer immediately after the Contract of Sale is signed.
Key points to understand:
- The buyer must agree to release the deposit early — they cannot be forced to
- Your conveyancer or solicitor handles the paperwork and formal request
- The presence of a mortgage on the property significantly affects the buyer's willingness to agree
How a Mortgage Affects Early Deposit Release
If there is no mortgage on your property, the process is straightforward. Without an existing encumbrance, the buyer can be confident they'll receive clear title at settlement as per the original Contract. In this scenario, a purchaser is generally more comfortable agreeing to an early release.
If you do have a mortgage, the situation is more complex. Your conveyancer or solicitor will need to obtain details from your lender (the mortgagee) to provide to the buyer. Without this information:
- The buyer is entitled to refuse the early release request entirely
- Even with the information provided, the buyer may still refuse if they are unsatisfied with what they receive
A common reason for refusal: if the mortgage includes a redraw or advance facility beyond the original sale price, the buyer may be concerned that you could draw additional funds against the property — potentially meaning the sale proceeds alone wouldn't be sufficient to discharge the mortgage in full at settlement.
The Role of Your Real Estate Agent in the Settlement Process
A good real estate agent does more than market your property — they play an active role in the settlement process as well.
When selling a property, your agent will typically be responsible for:
- Drawing up or coordinating the Contract of Sale — including the agreed deposit amount and settlement timeframe
- Holding the deposit in trust — until settlement or until an early release is agreed
- Maintaining professional connections with conveyancers and solicitors — so they can refer you to trusted legal professionals from the start
- Communicating between parties — keeping the transaction moving and flagging any issues that arise during the settlement period
Having a qualified, experienced local agent from day one means these processes are handled correctly, reducing the risk of delays or complications at settlement.
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Tips for a Smooth Settlement
Whether you're selling your home for the first time or have sold property before, a few proactive steps can help ensure settlement goes smoothly:
- Engage a conveyancer or solicitor early — don't wait until you have an offer; having your legal representative in place before you go to market saves time
- Discuss settlement timeframe upfront — negotiate a settlement period that suits your circumstances when accepting an offer
- Ask your agent about early deposit release — if this is important to you, raise it during your initial discussions with both your agent and conveyancer
- Clarify your mortgage discharge process — if you have a home loan, contact your lender early to understand their discharge timeline and any associated fees
- Confirm your account details with your conveyancer — make sure they have the correct bank details for your net proceeds well in advance of settlement day
FAQs: Receiving Funds from a Property Sale
How long after settlement do I receive funds?
In most cases, funds are transferred to your account on settlement day itself, or within one business day of settlement completing. Your conveyancer or solicitor will confirm the expected timing once settlement is finalised.
What is the typical settlement period when selling property in Australia?
Settlement periods in Australia typically range from 30 to 90 days, with 60 days being the most common. The period is negotiated and agreed upon in the Contract of Sale, so it can be adjusted to suit both parties' needs.
Can I speed up the settlement period?
Yes — a shorter settlement period can be agreed in the Contract of Sale if both buyer and seller are ready to proceed. However, a shorter period leaves less time to resolve any complications, so it's important that your conveyancer and (where applicable) your lender can work to that timeline.
What happens if settlement is delayed?
If the buyer fails to settle on the agreed date, you may be entitled to charge penalty interest for each day of delay, as specified in the Contract of Sale. Your conveyancer or solicitor will advise on your options if this situation arises.
Do I need a conveyancer or solicitor to sell my home?
In Australia, yes — a licensed conveyancer or solicitor is required to manage the legal aspects of transferring property ownership. A good real estate agent will have professional connections to reputable conveyancing firms and can refer you to trusted practitioners.
How do I find a real estate agent for selling my property?
LocalAgentFinder lets you compare local real estate agents side by side — including their commission rates, sales history, local expertise, and reviews from past sellers. It's free and there's no obligation.