VIC settlement timing at a glance
| Rule | Victoria |
|---|---|
| Is time "of the essence"? | Yes — obligations must be met strictly by the due date, with settlement completed by 5pm on the settlement date |
| If a party is late | The seller may issue a Notice of Default requiring completion within 14 days |
| If the notice isn't met | Termination, enforcement action, default interest, and the buyer covering the seller's additional legal costs |
| Extending the date | Only by mutual agreement — the seller isn't obliged to agree and may impose conditions or claim compensation |
| At settlement | Adjustments for council rates, water charges and owners corporation fees (excluding utility bills) |
"Time is of the essence of the Contract" means obligations must be performed strictly by the due date, with settlement completed by 5pm on the settlement date. If the buyer fails to settle, the seller may issue a Notice of Default requiring completion within 14 days; non-compliance can result in contract termination, enforcement action, default interest charges, and the buyer covering the seller's additional legal costs. The settlement date can only be extended through mutual agreement — either party may request an extension for special circumstances, but the seller is not obligated to agree and may impose conditions or claim compensation. Because settlement typically occurs late in the day and keys are not handed over beforehand (unless an early access agreement is arranged), buyers should plan removals carefully — it is recommended to schedule movers for at least the day after settlement, and buyers needing early access may negotiate a licence agreement with the seller's consent. At settlement, adjustments proportionally allocate payments the seller has already made during the settlement period, including council rates, water charges, and owners corporation fees — but excluding utility bills.