Settlement statements and adjustments

The settlement statement is the final financial reckoning of your purchase — the document that takes the contract price and turns it into the exact figure you transfer on the day. Most of it is straightforward; the part that trips buyers up is adjustments: the credits and debits that share ongoing property costs fairly between you and the seller as at the settlement date. This guide explains what the statement is, how adjustments are calculated, what is and isn't adjusted, and what to check so nothing lands as a surprise.

Key takeaways

• One document, one number: the statement reconciles the price, your deposit and all adjustments into the balance you must have ready on settlement day.
• Adjustments split shared costs: council rates, water and sewerage, and body corporate levies are apportioned to the settlement date, so each side pays only for the days they own the property.
• Not everything is adjusted: personal utilities like gas, electricity and internet are not — you arrange those yourself.
• Check it early: your conveyancer prepares and verifies the figures before the day, so review it the moment it's ready.

1. What a settlement statement is

Prepared by the buyer's conveyancer and agreed with the seller's, the statement starts from the purchase price, subtracts the deposit you've already paid, applies the adjustments below, and arrives at the balance due at settlement — the cleared funds you and your lender provide on the day. It's the single source of truth for who owes what, so both sides sign off on the numbers before any money moves, and your lender works to the same figures when releasing your loan. For the full breakdown, see what a settlement statement is.

In sequence, the statement builds up like this:

2. How adjustments work

Adjustments make sure each side pays only for the days they actually own the property: shared periodic costs — council and water rates, body-corporate or strata levies, rent on a tenanted property, and land tax where it applies — are apportioned to the settlement date. If the seller has prepaid beyond settlement the buyer reimburses the balance, and if a charge is still owing it comes off the seller's proceeds; the mechanics and worked examples are covered in common settlement adjustments.

3. What is not adjusted

Not every bill is shared:

• Gas, electricity and internet are connected in the new owner's name and billed from the day you take over — they aren't adjusted on the statement, so arrange them yourself before moving in. See are utilities adjusted at settlement?
• Your own costs — conveyancing fees, inspections and moving — sit in your budget, not the statement.

4. Red flags and what to check

• Adjustment dates. An amount apportioned to the wrong date shifts your balance — your conveyancer checks the seller's figures rather than taking them at face value.
• Missing levies. On a strata property, confirm body corporate levies (and any special levy) are accounted for.
• Unexpected line items. Every credit and debit should be explained; query anything you don't recognise.
• Timing of funds. Know the final figure early so your cleared funds are in the right account before the cut-off.

5. Questions to ask your conveyancer

• What's my exact balance due at settlement, and when must the funds clear?
• Which adjustments apply to this property, and how were they calculated?
• Are there any body corporate or special levies I'm inheriting?
• Is anything on the statement estimated rather than final?