Settlement day is when the property legally changes hands — the vendor gets their money, and you get the keys. In New Zealand, settlement is handled almost entirely by solicitors and banks, working behind the scenes. As the buyer, there’s relatively little you need to do on the day itself — but understanding what happens avoids surprises.
What Happens on Settlement Day
On settlement day, a choreographed sequence of events occurs:
1. Your bank advances the mortgage funds Your solicitor requests the mortgage drawdown from your bank. The bank confirms the funds are available and transfers them to your solicitor’s trust account. This is why finance must be fully arranged well before settlement — the bank needs to be ready to advance on the agreed date.
2. Your solicitor pays the vendor’s solicitor Your solicitor transfers the settlement sum (purchase price minus any deposit already paid) to the vendor’s solicitor. This is the net amount after deducting any adjustments (rates apportionments, body corporate levies, etc.).
3. Adjustments are calculated Council rates, water rates, and body corporate levies are adjusted to settlement day — the vendor pays up to and including settlement day, you pay from that point forward. Your solicitor handles these calculations and they’re reflected in the settlement statement.
4. Title transfer is completed Land Information New Zealand (LINZ) updates the title register to reflect the new owner (you) and the new mortgage (your bank). This is done electronically through e-dealing. The title officially transfers at 4pm on settlement day, but the practical outcome is the same — you take ownership.
5. You get the keys Once the vendor’s solicitor confirms funds received, they notify the real estate agent to release the keys to you. This typically happens mid-afternoon on settlement day. Your solicitor will tell you when to expect the call.
Pre-Settlement Inspection
You’re entitled to do a pre-settlement inspection (also called a final inspection) of the property in the days before settlement. This is important:
- Confirm the property is in the same condition as when you purchased
- Check all agreed chattels are present (dishwasher, heat pump, curtains, etc.)
- Confirm the vendor has vacated
- Note any damage that may have occurred since the sale
If you find issues: Notify your solicitor immediately. Settlement can be delayed if the property isn’t in the agreed condition — or a portion of the settlement funds can be held back (in an escrow arrangement) while the issue is resolved. Don’t just accept damage or missing chattels and hope to sort it out later.
Timing: When Does Settlement Complete?
Settlement in NZ typically completes between 12pm and 4pm on settlement day. The exact time depends on how quickly funds move through the banking system and whether all parties are ready.
If settlement doesn’t complete by 4pm: The title transfer doesn’t happen that day. Settlement moves to the next business day — with potential penalty interest payable by whoever caused the delay. This is relatively rare but does happen if there are banking or administrative issues.
For this reason, all parties want settlement to complete early. Delays are costly and stressful. Your solicitor will chase the process to ensure funds move promptly.
What Your Solicitor Does in the Lead-Up
In the weeks before settlement:
- Conducts a final title search to confirm no new caveats, mortgages, or dealings have been registered
- Requests the settlement statement from the vendor’s solicitor (showing purchase price, deposit paid, rates adjustments)
- Prepares the documentation for LINZ title transfer
- Arranges for your bank’s mortgage to be registered
- Requests mortgage advance from your bank
- Confirms final figures with you: exactly how much you need to contribute on settlement day (if anything, after the deposit)
What You Need to Do Before Settlement
1. Arrange insurance You need house insurance from settlement day — and ideally from the date your offer goes unconditional. Banks require proof of insurance before advancing mortgage funds. Arrange this early.
2. Arrange a settlement contribution (if required) If your deposit plus mortgage don’t fully cover the purchase price, you’ll need to make up the difference. Your solicitor will confirm the exact amount and bank account details for your contribution.
3. Do the pre-settlement inspection In the 1–3 days before settlement, inspect the property.
4. Arrange your move Book removalists, organise electricity and internet connection, arrange to pick up the keys.
5. Check your bank account details are confirmed Any surplus funds after settlement (rare, but can occur) will be returned to your nominated account.
Costs Paid at or Around Settlement
| Cost | When paid | Typical amount |
|---|---|---|
| Balance of purchase price | Settlement day | Purchase price minus deposit |
| Solicitor’s legal fees | At or around settlement | $1,500–$3,000 |
| LINZ title transfer and mortgage registration fees | Via solicitor | $100–$200 |
| Rates adjustments | Via settlement statement | Varies |
| Home insurance first premium | Before settlement | $1,500–$3,000/year depending on property |
After Settlement: What to Do
Change the locks: It’s good practice to replace or rekey the locks on your new home — you don’t know how many copies of the old keys exist.
Register your mortgage This happens automatically as part of the settlement process — your solicitor handles it.
Update your address Notify IRD, your bank, employer, and other parties of your new address.
Set up your mortgage repayments Confirm your repayment schedule with your bank and set up automatic payments to the correct account. Choose fortnightly repayments for a modest interest saving (see Pay Off Your Mortgage Faster).
File your ownership documents Keep a copy of your settlement statement, title certificate, and any building reports in a safe place.
Further Reading
- House Buying Process NZ — the full 8-step buying guide
- Due Diligence When Buying a House NZ — what to check before you get to settlement
- Making an Offer on a House NZ — the offer and acceptance process
- Property Costs NZ — all costs involved in buying
- Mortgage Repayment Strategies NZ — managing your mortgage post-settlement