Settlement Adjustments Explained: A Guide for WA Buyers & Sellers

Imagine this: you’ve bought a house in Perth’s northern suburbs. The seller already paid their annual council rates — but settlement happens halfway through the year. Do you cover the rest? Do they get reimbursed?

This is exactly what settlement adjustments are for. They make sure both the buyer and seller only pay for their share of property expenses up to the settlement day — or the possession date if the buyer moves in early.

It’s one of the most common sources of confusion in WA property transactions, and one of the areas where working with the right settlement agent makes all the difference.

What Are Settlement Adjustments?

Settlement adjustments are calculations made at the time of property settlement. They balance out costs like council rates, water charges, strata levies, and rental income so that each party only pays for the period they actually control the property.

In simple terms:

The seller pays for property expenses up to the settlement day (or possession date, if the buyer moves in early).
The buyer pays from the settlement or possession date onwards

Common Types of Settlement Adjustments in WA

Most people know about council rates, but there are other adjustments you may encounter:

Council rates – split between buyer and seller based on the settlement date.
Water rates & usage – buyers pay for water usage after settlement; sellers cover usage before.
Strata levies – adjusted if settlement happens mid-quarter.
Land tax – applies to some investment or high-value properties.
Rental income – for investment properties, rent already collected by the seller is apportioned.

👉 At RWS Settlements, we check all applicable charges — not just the obvious ones — to make sure nothing gets missed.

Buyer vs Seller: Who Pays What?

Settlement adjustments look slightly different depending on your role in the transaction.

For buyers:

You may need to reimburse the seller for expenses already paid (like annual council rates).
You take on responsibility for ongoing charges from settlement day onwards.

For sellers:

You’re reimbursed for prepaid expenses.
You must disclose charges like strata levies to avoid disputes at settlement.

Worked Examples: How Adjustments Are Calculated

Here’s how it looks in real numbers:

Expense Type	Total Amount	Seller’s Share	Buyer’s Share	Adjustment
Council Rates (Annual $2,000, settlement halfway through year)	$2,000	$1,000	$1,000	Buyer reimburses seller $1,000
Strata Levies (Quarterly $600, settlement mid-quarter)	$600	$300	$300	Buyer reimburses seller $300
Rental Income (Weekly $500, settlement mid-week)	$500	$250	$250	Seller reimburses buyer $250

Numbers like these make it easier to see how settlement adjustments work in practice.

Early Possession Example

If the buyer takes possession two weeks before settlement and annual council rates are $2,000, the adjustment is calculated from the possession date, not the settlement date.

Seller covers expenses up to possession.
Buyer covers expenses from possession onwards.

WA vs Other States: What’s Different?

While the concept of settlement adjustments is similar across Australia, WA does things a little differently:

Standard 6-week settlement – faster than NSW and VIC, where it’s often 8–12 weeks.
Electronic settlements (PEXA) – WA is 95%+ digital, meaning adjustments are calculated and exchanged securely online.
Local compliance requirements – WA buyers and sellers must deal with Landgate, local councils, and WA-specific legislation.

That’s why choosing a local settlement agent in WA is important — the rules aren’t identical everywhere.

How Digital Settlements Changed Adjustments

Before electronic settlements, adjustments were manual, leaving room for errors and delays. Today, with PEXA and DocuSign, the process is:

Faster – adjustments are automated in real time.
Safer – fewer opportunities for error.
More transparent – both parties can see exactly how figures are calculated.

At RWS Settlements, our secure client portal keeps you updated every step of the way, with adjustments explained in plain English.

Common Mistakes With Adjustments (And How to Avoid Them)

Here are the issues we see most often:

Sellers forgetting to disclose strata levies.
Buyers not budgeting for adjustments beyond the purchase price.
Confusion over water usage vs. fixed water rates.
Banks causing delays because final figures weren’t lodged in time.

✅ At RWS Settlements, we chase councils, banks, and water authorities early — so there are no last-minute surprises.

Want settlement adjustments explained before you sign?

Get a free, fixed-fee quote from RWS Settlements today — and avoid nasty surprises at settlement.

Why Choose RWS Settlements for Adjustments?

Other agencies might simply “process” your settlement. At RWS Settlements, we:

Provide transparent breakdowns of every cost.
Use digital tools for faster, safer settlements.
Combine expertise in law, finance, and compliance to catch issues others miss.

We’re licensed, insured, and a proud member of the Australian Institute of Conveyancers WA.

FAQs About Settlement Adjustments in WA

Buyers pay water usage from settlement day onwards. Sellers cover usage before settlement.

The buyer reimburses the seller for any prepaid strata levies after settlement day.

The outstanding amount is deducted from settlement funds, so the buyer isn’t left covering the seller’s share.

Yes — if councils, strata managers, or banks don’t provide figures on time. We manage this risk by following up early and keeping all parties accountable.

Yes. If rent is collected in advance, it’s apportioned so the buyer receives their share from settlement day onwards.

In this case, adjustments are calculated from the possession date instead of the settlement date. This ensures both parties pay their fair share for the period they actually occupy or control the property.

Conclusion: Settlement Adjustments Don’t Have to Be Complicated

Settlement adjustments can feel confusing, but at their core, they’re just about making sure buyers and sellers each pay their fair share.

At RWS Settlements, we simplify the process with:

Clear, upfront explanations
Worked examples in plain English
Digital convenience for faster results

Contact RWS Settlements today for a free, fixed-fee quote and expert guidance through your WA property settlement.