How Long Does Settlement Take in NSW?

One of the first questions clients ask us is ‘How long will settlement take?’

For a standard residential sale in NSW, settlement is typically six weeks after contracts are exchanged, but any agreed period or date can be nominated. The settlement date is set by the contract and can generally be negotiated before exchange.

What happens during the settlement period?

There are multiple steps happening between exchange and settlement in NSW, even if it doesn’t always look that way from the outside.

• For buyers, this is generally when lending arrangements are made, searches and enquiries are completed, and funds are organised for settlement.
• For sellers, their conveyancer will usually be arranging things such as the discharge of any mortgage over the property and preparing the matter for settlement.

Both sides ultimately use this time to make sure they are ready to meet their obligations under the contract on the settlement date.

Can you ask for a different settlement period?

Yes! Some buyers need a longer settlement to arrange funding or because they are selling another property first. A seller might need extra time to purchase their next home or organise their move. In other cases, everyone is ready to go, and a shorter settlement works best.

If the timing is important to you, tell your conveyancer before contracts are exchanged. It is best to negotiate the settlement period before you are locked into the contract.

What happens just before settlement?

Buyers will typically arrange a final inspection shortly before settlement to make sure the property is in the expected condition.

Your conveyancer will also prepare the settlement figures. This includes adjustments for things such as council rates, water charges and strata levies, so that each party pays their share.

Most NSW property settlements are completed electronically, with the conveyancers, banks and other parties coordinating the transaction online.

What happens on settlement day?

On settlement day, the balance of the purchase price is paid and transfer of ownership is registered. Once settlement has been completed, the buyer can generally collect the keys from the selling agent and take possession of the property. 

Generally, the buyer & seller do not need to be present at the settlement. Your conveyancer will attend to this on your behalf and notify you once it is complete. 

What if settlement is delayed?

Delays do happen. Sometimes there’s an issue with a bank, funds aren’t available in time or one of the parties simply isn’t ready. 

What happens next depends on the contract and the reason for the delay. There can be financial and legal consequences for failing to settle on time, so if you think there could be a delay, speak with your conveyancer as early as possible.