Why Your Property Settlement Could Be Delayed – And What You Can Do About It

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Property settlement in Victoria is meant to be a predictable and coordinated process. But even when all parties have good intentions, delays happen—and they can be costly, stressful, and legally risky.

Drawing on 25 years of experience, David Dawn, Licensed Conveyancer at Victorian Property Settlements, breaks down the most common causes of delayed settlements and what you can do to stay ahead of them.

What Is Property Settlement?

Settlement is the formal process where the buyer pays the balance of the purchase price and takes legal ownership of the property. In Victoria, settlement is most often conducted electronically via PEXA. Both parties’ representatives—conveyancers, banks, and sometimes legal agents—must coordinate to complete the transaction on time.

Delays to settlement can trigger:

  • Penalty interest

  • Termination of the contract (in extreme cases)

  • Extra rent or accommodation costs

  • Financing or moving complications

Common Causes of Delayed Settlement

1. Bank Not Ready

This is the number one cause of delay—particularly for purchasers. Even if your loan is approved, your bank must still complete internal checks, produce documents, and "book in" the settlement. Some banks require up to 10 business days from final approval.

Tip: Don’t assume bank approval means everything is ready. Confirm with your lender that your loan has progressed to the "ready for booking" stage.

2. Missing Documents

If key forms are unsigned, incomplete, or lodged late—such as:

  • Discharge authority (vendor)

  • Transfer of land (purchaser)

  • Stamp duty payment or exemption forms

Then the settlement cannot proceed.

Tip: Respond quickly to your conveyancer’s document requests and return all signed forms well ahead of time.

3. Unmet Special Conditions

Some contracts include pre-settlement conditions, such as:

  • Providing a building or pest report

  • Completing repair works

  • Resolving outstanding council notices

If the condition has not been met (or challenged), one party may refuse to proceed.

Tip: Ask your conveyancer to keep track of any “preconditions” and get written updates from the vendor’s side in the lead-up to settlement.

4. Incorrect PEXA Details

If a representative has input the wrong lot number, folio reference, or financial figure into the PEXA workspace, the settlement will fail.

Tip: A professional, experienced conveyancer will verify all title and figure entries—especially when there are adjustments involved.

5. Delays in Certificates or Rates Adjustments

Some councils or water authorities are slow to issue certificates needed to finalise rates adjustments. Without them, settlement figures may be incomplete or incorrect.

Tip: Good conveyancers order certificates early and follow up persistently. If necessary, a purchaser can proceed on an "estimated adjustments" basis.

What You Can Do to Minimise Delay

  • Instruct your conveyancer early – do not leave it until the week of settlement

  • Check that your finance is not just approved, but ready for booking

  • Avoid settling on a Friday – delays on Fridays often roll into the next week

  • Tell your conveyancer about any special conditions that could affect timing

  • Have clear communication with your lender and broker about readiness

  • Be prompt with all form signing, ID checks, and document returns

What Happens If the Other Side Delays?

If you’re ready and the other party is not:

  • You may be able to charge penalty interest

  • You may issue a Notice of Default

  • If delay continues, you may even be entitled to terminate the contract (seek advice)

Victorian Property Settlements will guide you through all options depending on the facts.

Conclusion

Settlement is not just a date—it is a sequence of coordinated tasks, and any one weak link can throw the whole timeline off. That is why working with a diligent and responsive conveyancer makes all the difference.

At Victorian Property Settlements, we prepare early, coordinate closely with banks and agents, and chase every detail to avoid last-minute surprises.