How Long Does Settlement Take?
Settlement in Australia typically takes 30 to 90 days from the date contracts are exchanged. The exact timeframe depends on the state or territory, what the buyer and seller negotiate in the contract, and whether any complications arise during the process. Most standard residential transactions settle within 42 to 60 days. For a detailed breakdown of the settlement process, read what happens on settlement day.
Definition
Property Settlement
Property settlement is the final stage of a property transaction where ownership legally transfers from the seller to the buyer. On settlement day, the buyer\u2019s lender pays the seller, the title is transferred, and the buyer receives the keys to the property.
Default Settlement Periods by State
Each state has a standard or default settlement period, but this can be negotiated between buyer and seller in the contract of sale. The periods below represent typical timeframes for standard residential purchases.
Typical Settlement Periods by State
| State | Typical Period | Notes |
|---|---|---|
| NSW | 42 days (6 weeks) | Standard contract default. Can be negotiated shorter or longer |
| VIC | 30 - 60 days | 30 days common for vacant land; 60 days for established homes |
| QLD | 30 - 90 days | 30 days for finance-ready buyers; 90 days if building inspections needed |
| WA | 30 - 60 days | Standard REIWA contract defaults to a negotiated date |
| SA | 42 days (6 weeks) | Default under standard REISA contract |
| TAS | 30 - 60 days | Negotiated between parties; 42 days is common |
| ACT | 30 - 60 days | Typically 30 days for straightforward transactions |
| NT | 42 days (6 weeks) | Standard contract default |
Factors That Affect Settlement Time
Several factors can shorten or extend the settlement period:
- Finance approval delays: If your lender is slow to issue unconditional approval or requires additional documentation, settlement may need to be extended. This is the most common cause of delayed settlement.
- Chain transactions: If the seller is buying another property simultaneously, they may need a longer settlement to align both transactions.
- Building and pest inspection issues: Significant defects found during inspections may require negotiation, repairs, or price adjustments before settlement can proceed.
- Strata or title complications: Outstanding strata levies, unregistered easements, caveats on the title, or boundary disputes can all delay settlement.
- Off-the-plan purchases: Settlement does not occur until construction is complete and an occupation certificate is issued. This can be 12 to 36 months after exchange.
- Government grants or schemes: Processing First Home Owner Grant applications or stamp duty exemptions can add time to the settlement process.
- Vacant land: Settlement on vacant land is often faster (as little as 14 to 30 days) because there are fewer inspections and no building-related complications.
What Happens on Settlement Day
- 1
Pre-settlement inspection
The buyer inspects the property (usually that morning) to confirm it is in the agreed condition, all included items are present, and any agreed repairs have been completed.
- 2
Final document preparation
Both conveyancers verify that all documents are in order: transfer of land form, mortgage documents, discharge of the seller’s mortgage, and adjustment statements for rates and levies.
- 3
Financial settlement (PEXA)
Most settlements in Australia now occur electronically through PEXA (Property Exchange Australia). The buyer’s lender transfers the purchase funds to the seller’s solicitor’s trust account, and the seller’s existing mortgage is simultaneously discharged.
- 4
Title transfer and mortgage registration
The title is transferred to the buyer’s name and the buyer’s new mortgage is registered on the title — all electronically through PEXA and the state land registry.
- 5
Keys and handover
Once settlement is confirmed (usually by early afternoon), the selling agent releases the keys to the buyer. The property is now legally yours.
- 6
Post-settlement notifications
Your conveyancer notifies council, water authorities, and strata (if applicable) of the ownership change. Utility connections are transferred to your name.
What If Settlement Is Delayed?
If one party cannot settle on the agreed date, the consequences depend on who caused the delay and the contract terms:
- Buyer delays: The seller can issue a notice to complete (usually allowing 14 additional days). If the buyer still fails to settle, the seller can terminate the contract and keep the deposit. The buyer may also be liable for penalty interest.
- Seller delays: The buyer can issue a notice to complete and may claim compensation for additional costs (storage, temporary accommodation, interest on bridging finance).
- Penalty interest: Most contracts include a penalty interest clause for late settlement, typically calculated at a rate above the standard home loan rate.
Communication between conveyancers is critical if a delay is anticipated. Early negotiation of an extension is almost always preferable to formal notices and penalties. Once settlement is complete, see our checklist of what to do in the first 30 days after settlement.
Frequently Asked Questions
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