What's adjusted at settlement, and what isn't
Buying a property doesn't mean taking over the seller's household accounts. Some costs belong to the property and are dealt with at settlement. Others belong to the person using the service, and you need to set those up yourself.
| Charge or service | Adjusted at settlement? | What you need to do |
|---|---|---|
| Council rates | Often | Your conveyancer handles the relevant settlement adjustment |
| Water charges | Depends on the charge and the state or territory | Your conveyancer determines the applicable adjustments |
| Strata or body corporate levies | May be | Your conveyancer handles any applicable adjustment |
| Electricity | No | Arrange your own account |
| Gas | No | Arrange your own account |
| Internet or NBN | No | Arrange your own service |
| Solar and feed-in tariff | No | Set up your own electricity account and tariff |
Property-related charges
Council rates are generally adjusted between buyer and seller for the relevant period, subject to the transaction and applicable state rules.
Water charges are often adjusted where applicable, depending on the type of charge and the state or territory. Your conveyancer will determine which applicable water charges need to be adjusted as part of the settlement calculation.
Strata or body corporate levies may be adjusted between buyer and seller depending on the property, the levy period and the applicable rules.
Services you arrange yourself
Electricity and gas. No settlement adjustment. These are generally personal accounts, so you arrange your own account and connection with the provider. Do this before settlement where possible, so the property is ready for you when you take possession.
Internet and NBN. No settlement adjustment. Your internet service is a personal account rather than a property charge, so you'll need to arrange your own service. If you need internet immediately after moving in, arrange the connection ahead of settlement, because activation or installation can take time.
Solar and feed-in tariffs. The solar system may remain with the property, but the seller's electricity account and tariff arrangement generally don't transfer to you. You'll need to arrange your own electricity account and check what tariff and feed-in arrangements are available. What is included with the property is ultimately determined by the contract.
How this appears on your settlement statement
Your settlement statement sets out the financial adjustments made as part of completing the purchase. Where applicable, amounts such as rates, water charges or strata levies are allocated between buyer and seller according to the relevant period. Common adjustments covers how those calculations work, and what a settlement statement is explains the document itself.
