What Is a Settlement Statement in Queensland Real Estate? Definition and Agent Guide

Your seller has just exchanged — the contract is unconditional, settlement is three weeks away, and they want to know exactly what they’ll walk away with. The document that answers that question precisely is the settlement statement. Every Queensland agent needs to understand what it contains, how it’s constructed, and why a misfiled rates notice or a late commission invoice can alter the numbers right before the finish line.

A settlement statement (also referred to as settlement figures or, in some other Australian states, a statement of adjustments) is a financial document prepared by the seller’s solicitor or conveyancer in the lead-up to settlement. It shows the exact amount of money due to the seller at settlement, with the deposit accounted for, any mortgage release fees deducted, and rates, water, and body corporate charges proportioned between the buyer and seller. It is the definitive financial record of a property transaction — not the contract price, not an estimate, but the final, agreed-upon figure resolved to the last cent.

How a Settlement Statement Works in Queensland Real Estate

The basic structure

A settlement statement is a financial summary prepared during a property transaction. It ensures all parties know exactly what they owe or will receive at settlement. For buyers, it shows the remaining balance to pay. For sellers, it calculates the net proceeds after adjustments and expenses are deducted.

At its simplest, the calculation flows in one direction: start with the purchase price, subtract the deposit already paid and any deductions against the seller’s proceeds, add or subtract the various rate adjustments, and arrive at the balance payable by the buyer — or, from the seller’s perspective, the net proceeds they receive after all outgoings and deductions are cleared.

Adjustments allocate property-related expenses like council rates and water charges between the buyer and seller based on their respective ownership periods. The balance payable or receivable is the final amount the buyer must pay or the seller will receive after all adjustments are calculated. The cheques-to-be-drawn section provides a breakdown of cheques required to complete the settlement, including payments to the seller, government authorities, and other entities.

How adjustments are calculated

As a general rule, the seller pays for all expenses, and is entitled to any rent income, until settlement. The buyer pays for expenses and is entitled to any rent income after settlement. Settlement adjustments allow the parties to compensate one another for expenses that may be paid in advance or in arrears, or for rent the seller may have received which relates to a period after settlement.

There are two types of adjustments on a Queensland settlement statement. A plus adjustment is a cost already paid by the seller that the buyer needs to reimburse. For example, if the seller has prepaid annual council rates, the buyer pays their share for the period from the settlement date onward. Conversely, a less adjustment is a cost incurred but unpaid by the seller that the buyer will pay post-settlement — the seller’s portion for their ownership period is deducted from the sale proceeds.

The mechanics of each type of adjustment are straightforward but require accurate data. Throughout the rating period — for example, from 1 July to 31 December — solicitors adjust to the settlement date. The council is paid the whole amount owing for the rates for the period, and the vendor is reimbursed for their pro-rated share. Water charges work differently. A special water meter read calculates the amount of water being used, and that will be paid by the vendor up to and including the settlement day; the day after settlement it becomes the buyer’s cost to bear. The same process occurs for any body corporate levies.

One important distinction applies to water supply in Queensland: the cost of a council rates and water search varies depending on which council area the property is located in and whether rates and water are managed by the council or water is outsourced to another company. Gold Coast City Council, for instance, manages both rates and water, while in Brisbane the council manages rates but water is billed by Queensland Urban Utilities.

What electricity is — and isn’t — adjusted

A common question from first-time sellers is why electricity doesn’t appear as an adjustment. Electricity is not adjusted between the parties. The seller cancels their account for power and the buyer must open a new account. The reason electricity is not adjusted is that the seller remains liable to pay for power usage and charges if the account is unpaid or is not cancelled by settlement — meaning the seller’s power bill never gets passed on to the buyer, in contrast to other expenses such as rates, water, and body corporate levies.

Land tax adjustments

Land tax warrants particular attention in Queensland investment property transactions. Not all buyers are going to be required to pay land tax after settlement. Therefore, it is not reasonable for a seller to ask a buyer to pay part of their land tax bill. The only time an adjustment may be made for land tax is if the property is commercial in nature (and some other criteria apply) or where the contract is for property sold “off the plan”.

Why a Settlement Statement Matters for Queensland Agents

Commission collection is directly tied to this document

The settlement statement is where the agent’s commission enters the picture. Once a contract is unconditional, the agent’s entitlement to commission is established under the Form 6 appointment — the Appointment of Property Agent required under the Property Occupations Act 2014 (Qld). Commission is commonly expressed as a percentage of the sale price (sometimes tiered) or a fixed dollar amount. The Form 6 should clearly state the rate and specify whether GST is included or excluded, and it should also set out exactly when the commission becomes payable — for example, on unconditional contract or at settlement.

The practical consequence for agents is critical: it is important that agents send an invoice for their commission to both parties’ conveyancing solicitors well in advance of the settlement date for the contract of sale so that a cheque can be drawn at settlement for the agent’s commission. Miss that window and you create an accounts chase at the worst possible time — immediately after a settlement that has already absorbed everyone’s attention.

Section 88 of the Property Occupations Act 2014 (Qld) is directly relevant here: commission may only be claimed on actual amounts, and a property agent must not claim commission worked out on an amount more than the actual sale price of the property. This means the commission figure on the settlement statement must match the actual contract price, not an estimate or a rounded number — and must align exactly with the agreed rate in the Form 6.

Understanding the seller’s net position

Sellers often fixate on the headline sale price from the moment of exchange. By the time settlement day arrives, the number that matters is the net proceeds — and the settlement statement is the only place that figure lives. For sellers, the settlement statement calculates net proceeds after adjustments and expenses are deducted. Agents who can walk a seller through this document before the solicitor sends it reduce anxiety significantly, build trust, and protect themselves from misplaced blame when the seller receives a figure lower than expected.

A simple illustration: on a $750,000 sale, if the seller’s mortgage payout is $480,000, council rates owed are $1,800, the agent’s commission is $18,150 (including GST), mortgage release fees apply, and water usage charges add $340, the seller will not receive $750,000 — they will receive considerably less. Any outstanding mortgage must be paid off at settlement, with the amount deducted from the seller’s proceeds. None of this is a surprise if the settlement statement has been discussed beforehand.

The statement isn’t a one-way document

Many agents think of the settlement statement as the solicitor’s problem. In practice, errors on a settlement statement can delay settlement or, worse, result in a seller receiving incorrect net proceeds that require post-settlement correction. Errors in adjustments can delay property settlement in Queensland. It is important to review all calculations thoroughly to ensure the settlement process goes smoothly. An agent who has kept clear records of what rates notices, water bills, or body corporate levy schedules were received during the campaign is in a position to flag discrepancies before they become problems.

Common Mistakes Around Settlement Statements in Queensland Real Estate

Paying bills close to settlement without telling the solicitor

If a seller pays a rates or water bill during the conveyance and doesn’t tell the solicitor, the figures may be adjusted as though the bill is unpaid. If the solicitor adjusts assuming the bill is outstanding and the seller has already paid it, the seller may be out of pocket. This is one of the most common and avoidable errors in Queensland residential settlements. Agents who are still in contact with their seller clients during the settlement period — which good agents are — should alert sellers to this clearly once a settlement date is confirmed.

Misunderstanding “plus” and “less” adjustments

It is common for buyers to misread the settlement figures and think that they are being hit with the seller’s outstanding rates or water bill. Agents dealing with buyer inquiries in conjunction sales need to be able to explain this clearly. A plus adjustment is not a penalty — it is a reimbursement of costs the seller has already paid. The buyer is stepping into an ownership period for which rates or levies have already been covered.

Late commission invoices

This is an agent-side error with direct financial consequences. If the commission invoice does not reach both solicitors before settlement figures are finalised, the commission may not be included in the settlement statement’s cheques-to-be-drawn section. The result is delayed payment and, in some cases, a dispute about whether commission is still owed given the proceeds have already been disbursed. The REIQ recommends agents send commission invoices to both parties’ solicitors well in advance of settlement — not on settlement day, and not the day before.

Tenancy adjustment complexities on investment properties

When a tenanted property settles, the settlement statement must include a tenancy adjustment — a pro-rata split of the current rent between seller and buyer based on the settlement date. Solicitors work out the amount of the rent and pro-rata it to ensure that the vendor is getting paid until settlement and then the day after it becomes the buyer’s to receive. However, there is a specific limitation under the standard REIQ Contract terms: as per the Standard Terms within the REIQ Contracts, solicitors cannot collect rent in arrears. This means that if the rent is not paid up to date and it is owing, no adjustments can be made on the settlement statement. For investment property agents, this means keeping property managers informed about the settlement timeline and ensuring rent arrears are addressed before settlement day.

Settlement date changes require recalculation

If for some reason the settlement date is delayed, the adjustments need to be recalculated. This is frequently overlooked when a contract extension is agreed. The settlement statement issued for the original date is not valid for the new date — every figure tied to a daily rate or billing period must be recalculated. Agents arranging extensions should explicitly flag this to both solicitors when confirming the new date.

What Queensland Agents Need to Know About Settlement Statement Compliance and Process

The legislative framework

Queensland property settlement is governed at the contractual level by the standard REIQ Contract and, from 1 August 2025, by the Property Law Act 2023 (Qld), which replaced the outdated Property Law Act 1974 (Qld). The Queensland Property Law Act 2023 replaced the previous legislation on 1 August 2025, with the most significant shift being the introduction of a mandatory seller disclosure scheme. This affects private sellers, real estate agents, and legal professionals. While the seller’s disclosure statement (a pre-contract obligation) is distinct from the settlement statement, agents need to understand where one document ends and the other begins.

Provisions relating to the settlement of contracts have been updated to reflect modern conveyancing processes, including electronic conveyancing. In practice, the majority of Queensland residential settlements now settle electronically via PEXA, the national e-conveyancing platform. The settlement statement mechanics are the same whether settlement is paper-based or electronic, but agents should be aware that system outages can trigger settlement extensions under specific provisions of the Property Law Act 2023.

The agent’s role in the settlement process

The settlement statement is prepared by the seller’s solicitor or licensed conveyancer — it is not the agent’s document to prepare. However, settlement statements are prepared by the conveyancer or solicitor, ensuring all calculations are accurate and compliant with Queensland property laws. The agent’s obligations are complementary: maintain communication with the seller, ensure commission invoices are sent promptly and to the correct parties, and be available to provide transaction records if rate notices or property management data are needed to verify adjustment calculations.

Under the Property Occupations Act 2014 (Qld), agents must be appointed via a valid Form 6 before they can claim commission. Queensland agents must be formally appointed in writing before they are entitled to sell a property or charge commission. This is done using the prescribed Appointment of Property Agent (Form 6). Without a valid appointment, an agent cannot legally claim commission for a sale. The settlement statement is where that entitlement is ultimately realised — the commission cheque drawn at settlement is the mechanism by which the agent is paid.

Reviewing the statement before settlement

Settlement statements are typically provided by the conveyancer a few days before settlement to allow time for review and corrections. Sellers who receive the statement for the first time on settlement day and see a net proceeds figure lower than anticipated are more likely to contact their agent in a panic. Proactively asking the seller’s solicitor to share a draft early, and then walking through it with the seller, is sound client management practice — not just a courtesy.

Agents working with overseas investors or interstate buyers should note that Queensland’s adjustment methodology differs in detail from other jurisdictions. The billing periods for council rates vary by council, body corporate levies are calculated in a quarterly period versus council rates which are calculated over a six-monthly period. Rates searches and water searches must be obtained for every settlement — all settlement figures are calculated off the actual current rate search, the water search, and the body corporate levies purchased on behalf of the buyer as part of the conveyancing process.

What This Means for Queensland Agents

The settlement statement is not an abstract financial document that belongs entirely to the solicitor’s world. It is the final reckoning of everything that has happened in a transaction — and it directly governs when and how much commission an agent receives.

Three practical habits separate agents who manage settlement cleanly from those who scramble:

Invoice early. Send your commission invoice to both parties’ solicitors as soon as the contract goes unconditional. Do not wait for a reminder or assume the solicitor has your details on file. Confirm receipt in writing.

Brief your seller before the statement arrives. Walk through the likely deductions — mortgage payout (if applicable), your commission, rates adjustments — before the solicitor sends the formal figures. A seller who already understands the structure receives no surprises. A seller who sees a net proceeds figure without context calls their agent.

Communicate during the settlement period. Alert sellers to the consequences of paying rates, water, or body corporate accounts close to settlement without telling their solicitor. A payment that goes unrecorded can produce an erroneous double-count on the settlement statement that takes time to unwind.

Including adjustments in the settlement statement provides clarity and avoids disputes between buyers and sellers. Adjustments align with the terms of the contract of sale, ensuring legal compliance. That clarity benefits everyone — but agents who understand the mechanics are the ones best placed to protect their clients and their own commission when the numbers matter most.