Settlement Statement: Everything You Need to Know

A settlement statement is a key document in any property transaction. It clearly shows what the buyer needs to pay, what the seller will get, and how all costs are shared up to settlement day. Without this document, buyers might pay too much, sellers could miss out on what they’re owed, and the transfer process may be delayed.

At Tahlia Hoegel Conveyancing, we prepare each settlement statement carefully so our clients in Victoria can feel confident and fully informed.

In this article, we’ll provide relevant and up-to-date information on the following topics:

• What a settlement statement is and why it’s important in property transactions
• Step-by-step explanation of how to prepare a settlement statement
• The process of preparing a settlement statement correctly in Victoria
• A detailed buyer vs seller settlement statement comparison with examples
• Key factors unique to settlement statements in Victoria, including Section 32, rates, and Land Use Victoria requirements
• The most common mistakes in settlement documents and how to avoid them.
• The role of digital conveyancing through PEXA settlement statements
• Direct answers to common frequently asked questions.

What is a Settlement Statement?

A settlement statement is the financial record prepared by a licensed conveyancer that breaks down the money flowing between the buyer and seller at settlement.

A typical settlement includes:

• The purchase price as agreed in the contract of sale
• The deposit that has already been paid by the buyer
• Adjustments for council rates, water, land tax, and sometimes rent or owners corporation fees
• Conveyancing fees, bank charges, and disbursements
• Victoria stamp duty payable on the transfer of land at settlement
• The final balance due at settlement

For example, if the seller has paid council rates through December but the property settles in September, the buyer pays them back for the period from September to December. This adjustment is included in the settlement statement to keep things fair.

How to Conduct and Prepare a Settlement Statement

Preparing this document is a detailed process, but it’s essential for a smooth property transfer. In most cases, your conveyancer manages the entire task to make sure every figure is correct and compliant with Victorian law.

Here’s a clear five-step approach:

1. Review the Contract and Section 32
   Your conveyancer begins by checking the contract of sale and Section 32 Vendor Statement to confirm the purchase price and key details.
2. Assess Outgoings
   They gather rate notices, water certificates, and land tax assessments. If the property has an owners corporation or tenants, those records are also reviewed to capture all costs.
3. Apply Adjustments
   Expenses like rates and utilities are divided fairly between buyer and seller based on the settlement date. This ensures both parties only pay for the period they own the property.
4. Confirm Payments
   Deposits already paid and lender contributions are verified to make sure all figures line up with financial requirements.
5. Finalise the Statement
   Once everything is checked, your conveyancer prepares the final property settlement statement. In Victoria, this is usually completed digitally through PEXA, allowing for secure and real-time fund transfers.

At Tahlia Hoegel Conveyancing, our team of licensed conveyancers handle each step with care, ensuring your settlement statement is accurate, transparent, and fully compliant.

How to Read a Settlement Statement?

Many people ask how to read a settlement statement. It can look overwhelming, but when broken down, it’s logical.

• The top section lists the purchase price and deposit.
• The middle section shows adjustments like rates, water, or land tax.
• The bottom section confirms the balance payable by the buyer and the net proceeds the seller will receive.

Here’s a simple settlement statement example:

• Purchase price: $600,000
• Deposit paid: $60,000
• Council rates adjustment: +$800
• Water rates adjustment: +$350
• Balance payable: $541,150

This ensures each side contributes fairly to property costs up to the handover date.

Buyer vs Seller Settlement Statement Comparison

The buyer settlement statement and the seller settlement statement show the same deal from opposite sides.

Here’s an example of a $700,000 Victorian property where the seller has already paid $1,200 in council rates through December. Settlement occurs in September.

The buyer’s statement shows the extra amounts they need to pay at settlement. The seller’s statement shows the final proceeds after reimbursements.

Both statements must balance perfectly, that’s why accuracy is so important.

Settlement Statements in Victoria

In Victoria, every property transfer requires a settlement statement property prepared by the acting conveyancer.

Local rules shape how figures are calculated:

• Council rates – adjusted according to billing cycles, often quarterly or yearly
• Water charges – handled by providers like Melbourne Water or Barwon Water
• Land tax – applied in certain sales, especially investment properties
• Owners corporation fees – common in apartments and townhouses

Victoria also uses PEXA digital settlements, where your conveyancer uploads all adjustments and balances before the day. This creates a secure, transparent process with instant fund transfer and title registration through Land Use Victoria.

Common Mistakes in Settlement Statements

Mistakes in settlement documents can cost thousands or stall a sale. The most common issues include:

• Missed adjustments – such as prepaid rates or body corporate fees
• Wrong settlement date – leading to over- or under-apportionment
• Tenant rent overlooked – particularly with investment properties
• Incorrect land tax allocation – in multi-property ownership cases
• Calculation errors – simple maths mistakes that may cause settlement delays

At Tahlia Hoegel Conveyancing, every conveyancing settlement statement is checked against certificates, contracts, and lender requirements to avoid these costly errors. Get in touch with our conveyancing team today to see how we can help.

Digital Settlement Statements (PEXA)

The modern way to settle in Victoria is through PEXA settlement statements. PEXA (Property Exchange Australia) is a digital platform used by banks, conveyancers, and Land Use Victoria.

It allows:

• Real-time payments between buyer, seller, and lenders
• Instant title transfer lodged electronically
• Secure review of adjustments and balances by all parties before the day

For clients, PEXA means no bank cheques, no paperwork delays, and full confidence that their statement of settlement matches the funds exchanged.

FAQ: Settlement Statements Explained

Here’s Our Final Thoughts

Your settlement statement is the foundation of a smooth property transfer. It ensures both buyer and seller know exactly what is owed, prevents disputes, and protects your interests on settlement day.

That’s why trusting conveyancing experts with your settlement statement is the smartest decision you can make. At Tahlia Hoegel Conveyancing, we specialise in preparing clear, accurate settlement documents for clients across Victoria. From adjustments to final balances, we make sure nothing is missed. Contact us today for all of your settlement needs.

*​Reviewed by Tahlia Hoegel, Licensed Conveyancer (Licence No. 002125L) • Last updated 12 Oct 2025*