Settlement timing rules by state at a glance
| Rule | NSW | QLD | VIC |
|---|---|---|---|
| Time of day | Usually from 2pm | Strictly by the contract's due date | In practice completed during business hours via PEXA, typically afternoon |
| Moving the date | Only by mutual agreement (unless the contract allows otherwise) | Either party (buyer or seller) can extend by up to five business days by giving notice, without the other's agreement | Only by mutual agreement |
| If a party is late | The other side serves a Notice to Complete (at least 14 days) | Time is of the essence, so being late is a breach once any extension is used up | The seller may serve a Notice of Default requiring completion within 14 days |
| If the deadline isn't met | Terminate, forfeit the deposit (up to 10%), sue for damages | Terminate and pursue remedies for breach | Terminate, charge default interest, buyer covers the seller's extra legal costs |
Most contracts treat the settlement date as a firm deadline (in some states "time is of the essence," meaning obligations must be met strictly by the due date). If a party cannot settle on the date, the other party can usually issue a formal notice requiring completion within a set period; failure to comply with that notice can lead to termination, forfeiture of the deposit, penalty or default interest, and a claim for damages. Because a delayed settlement can disrupt removalists, move-in dates, insurance, contractors and tenancy arrangements, both parties should plan for the possibility of an extension while still striving to meet the original date. At settlement, adjustments are also made on a pro-rated basis for outgoings such as council rates, water and other periodic charges, so each party pays only for their period of ownership.
On the day. Settlement runs electronically through PEXA and usually completes in the afternoon rather than first thing, because the banks need the morning to confirm the final figures and release funds. If the funds or documents are not ready before the day's cut-off, settlement can roll over to the next business day, which is when penalty interest and extra costs can start. For that reason, don't book removalists to arrive on settlement morning until your conveyancer confirms the keys have been released. The step-by-step of the day itself is covered in handing over at settlement.
