Settlement statements and adjustments
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What is a settlement statement?

What is a settlement statement?

A settlement statement is a financial document that sets out all the costs and payments the buyer and seller must settle on the day — usually prepared by the buyer's conveyancer.

A settlement statement is the financial summary of your property purchase — the document that reconciles every amount owing between buyer and seller and lands on a single figure: the balance you need to have ready on settlement day. It's usually prepared by the buyer's conveyancer and agreed with the seller's conveyancer in the days beforehand.

What the statement does

Between the agreed contract price and the money that actually changes hands sit a handful of credits and debits. The settlement statement gathers them in one place so both sides agree on the final numbers before any funds move. In broad terms it starts from the purchase price and then:

  • Subtracts the deposit you've already paid, leaving only the balance to fund.
  • Adjusts for shared property costs — council rates, water and, for units, body corporate or owners corporation fees are apportioned between seller and buyer as at the settlement date, so each pays only for the days they own the property.
  • Accounts for other credits or debits — such as a rent adjustment on a tenanted property, or amounts the seller must pay out at settlement.

The result is the balance due at settlement — the exact amount your conveyancer will tell you to have available.

What's typically on it

LineWhat it is
Purchase priceThe agreed contract price
Less deposit paidThe deposit already lodged on exchange or signing
Rates & water adjustmentCouncil rates and water apportioned to the settlement date
Body corporate / owners corporationStrata or community levies apportioned (units and townhouses)
Other adjustmentse.g. rent on a tenanted property, or land tax where it applies
Balance due at settlementThe final figure the buyer must have ready

The apportioned items are called adjustments. How each one is worked out is covered in the explainer on common settlement adjustments — here the point is simply how they fit into the statement.

The same items, seen from each side

An adjustment that credits one party debits the other — each conveyancer's statement is the mirror image of the other's:

Line itemOn the buyer's statementOn the seller's statement
Purchase priceThe amount owedThe amount received
Deposit already paidReduces the balance still to fundCounted as part of the price already received
Rates, water & strata prepaid by the sellerReimburses the seller for the days after settlementCredited for those prepaid days
Water usage by the sellerCredited now, then the buyer pays the next billDeducted from the seller's proceeds
Seller's existing mortgageNot shownPaid out of the seller's proceeds to discharge the loan
Rent on a tenanted propertyReceives rent for the days after settlementCredited rent up to settlement

Who prepares it, and when

Your conveyancer prepares the statement, exchanges figures with the seller's conveyancer, and finalises it in the days before settlement. You should receive it to review ahead of the day — it tells you exactly how much to transfer and where. If you're borrowing, your lender works to these figures too, releasing the loan funds to make up the balance.

Why it's worth checking

  • It's the number you fund. Getting it early means no scramble for cash on settlement day.
  • Adjustments are easy to get wrong. A rates or levy amount apportioned to the wrong date shifts the figure — your conveyancer checks the seller's numbers rather than taking them at face value.
  • It confirms what you're paying for. Every credit and debit is itemised, so nothing lands as a surprise in the final balance.

In short, the settlement statement is where the contract price becomes the real, final figure — reconciled, adjusted and agreed before anyone's money moves.

Common questions

Who prepares the settlement statement?

Usually the buyer's conveyancer, and it's shared with the seller's side to agree before settlement.

What's on a settlement statement?

The purchase price, the deposit already paid, the adjustments for rates and other charges, and the final balance payable at settlement.

Why should I check my settlement statement?

Because it sets the exact amount you pay on the day. A mistake in the adjustments or figures directly changes what leaves your account — check it before settlement.

Related explainers

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