Why You Should Not Book a Settlement on a Friday!

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When planning a property transaction, clients often opt for a Friday settlement in the belief that it offers the convenience of moving over the weekend. While this reasoning is understandable, from a conveyancer’s perspective, Friday settlements—and particularly those falling before or after long weekends—carry a significantly higher risk of failure or delay.

Such delays can result in increased stress, financial penalties, and logistical disruptions for both purchasers and vendors. Below, we outline why these timeframes are best avoided, supported by industry data, statutory considerations, and practical insight gained from years of conveyancing experience in Victoria.

 
1. Fridays Are Statistically the Riskiest Day for Settlement

A survey by GlobalX involving more than 230 property professionals revealed that while Friday is the most commonly booked day for settlement, it is also the most failure-prone. Around 75% of practitioners indicated that Friday settlements face the highest risk of delay due to heavy transaction volumes, particularly as many firms seek to finalise files before the weekend.

When issues arise—whether they involve banking delays, administrative oversights, or unresolved conditions—there is often no time to resolve them before offices close, resulting in the matter rolling over to Monday.

 
2. Days Surrounding Long Weekends Are Even Worse

In our experience, the most dangerous times to settle are not only Fridays, but also the day before a long weekend and the first business day after one. These periods are often marked by reduced staffing levels, banking cut-off congestion, and a backlog of transactions.

Staff at banks, law firms, and settlement agents may be unavailable or operating on reduced hours, and key stakeholders may not be contactable. This leads to significantly higher rates of failed settlements, particularly when urgent troubleshooting is required and there is simply no one available to assist.

These delays can cascade into the following week, causing further inconvenience and compounding stress for clients who may already have committed to removalists, temporary accommodation, or related services.

 
3. Manual Processes and Financial Institutions Under Strain

PEXA data shows that clients involved in manual (paper-based) settlements face a 20% delay rate, with 25% of those delays incurring financial consequences. Fridays and long weekends increase these risks due to the sheer volume of transactions processed.

Even fully electronic settlements can experience technical or authorisation delays when parties—particularly financial institutions—are overwhelmed or under-resourced around long weekends.

 
4. The Cost of Delay Is Not Just Emotional—It’s Financial

In Victoria, contracts typically include penalty interest for late settlement, calculated under the Penalty Interest Rates Act 1983 (Vic) at 2% above the prescribed rate (currently totalling 12% per annum). On a high-value transaction, this can result in hundreds of dollars in daily penalties, not including potential damages or costs incurred from a vendor’s own delayed purchase or relocation.

 
5. Practical Stress and Service Availability

Clients often assume a Friday settlement means a smooth weekend move. However, a delay occurring late Friday leaves little to no recourse until Monday—except, of course, when Monday is a public holiday, in which case the problem is pushed into Tuesday.

This can create knock-on effects such as:

  • Removalists charging cancellation or rebooking fees

  • Storage facilities needing to be arranged at short notice

  • Buyers left without accommodation for the weekend

  • Vendors unable to vacate properties as agreed

 
Our Strong Recommendation

At Victorian Property Settlements, we strongly recommend avoiding settlements on Fridays and particularly around long weekends.

The ideal window for settlement is early to mid-week (Monday through Wednesday), which provides flexibility to resolve any last-minute issues and ensures access to banks, agents, and legal representatives during full business hours.

This reduces your risk, saves you money, and leads to a far smoother outcome for all involved.

If you are in the process of planning a property sale or purchase, contact us for tailored advice on your ideal settlement strategy.