NSW settlement timing at a glance
| Rule | New South Wales |
|---|---|
| Earliest settlement time | Generally 2pm |
| Moving the date | Only by mutual agreement (unless the contract allows otherwise) |
| If a party is late | The other side can serve a Notice to Complete requiring settlement within at least 14 days |
| Penalty interest | Daily, at the rate specified in the contract |
| If the notice isn't met | Terminate, forfeit the deposit (up to 10%), and sue for damages / resale loss (if resold within 12 months) |
The earliest time for settlement is generally 2pm, as banks and lenders are usually unable to settle earlier. The settlement date can only be extended by mutual agreement between you and the vendor, unless the contract contains an additional clause specifically allowing either or both parties to extend or change it. If you fail to settle, the vendor is entitled to issue a Notice to Complete requiring you to settle within at least 14 days, charge daily penalty interest at the rate specified in the contract, and charge any other late settlement fees the contract specifies (e.g. notice to complete fee, settlement cancellation/reschedule fee). If you then fail to settle by the date in the Notice to Complete, the vendor can terminate the contract, keep the deposit of up to 10% of the purchase price, and sue you for damages and any loss on resale (if the vendor resells within 12 months after termination). The same mechanism works in reverse: if the vendor fails to settle, you can issue a Notice to Complete requiring settlement within at least 14 days, and if they still fail to settle you can terminate, have your deposit refunded, and sue for damages for breach of contract. At settlement, besides the balance of the purchase price, adjustments are made on a pro-rated basis for rents, profits, council rates, water/sewerage/drainage charges, strata and community title levies, land tax and other periodic outgoings, so the vendor is liable up to and including the adjustment date and the purchaser after it. Surcharge land tax and first home buyer choice property tax remain the vendor's liability and are not adjusted unless agreed. The adjustment date is the earlier of the settlement date and the date the purchaser takes possession.
On the day. In NSW settlement runs electronically through PEXA and generally cannot start before about 2pm, because the banks need the morning to confirm the final figures and release funds. If it is not completed before the day's cut-off it can roll to the next business day, which is when default interest starts, so don't book removalists for settlement morning until your conveyancer confirms the keys are released. See also handing over at settlement.
