What Happens If Your Settlement Delays in NSW?
28th October, 2025
In New South Wales (NSW), property settlement usually occurs between 30 and 90 days after signing the contract. Settlement finalises the property sale by transferring legal ownership and exchanging funds. However, sometimes delays happen, which can cause stress for both purchasers and vendors. But what exactly happens if your settlement is delayed?
Common Reasons for Settlement Delays
One of the main causes of delays is issues with bank approvals. If a buyer’s home loan isn’t approved in time or if there are errors in the vendor’s mortgage discharge paperwork, settlement cannot proceed.
Delays can also occur due to problems found during the final inspection. If repairs or damages arise that need addressing, the settlement date might be postponed until these issues are resolved.
Additionally, errors or late submissions of legal paperwork can slow the process. Even minor mistakes, such as incorrect spelling of names, can lead to delays with banks or land authorities.
What Are the Consequences of a Delayed Settlement?
For vendors, delays can often mean continuing to pay rates, insurance, and mortgage repayments on a property they expected to have sold. They may also need the settlement funds to finance their next purchase, so delays can disrupt their plans.
Purchasers might face extra rental costs if they must extend their lease. They may lose deposits paid to removalists or storage facilities. In worst-case scenarios, buyers who have already vacated their previous home could find themselves temporarily without accommodation.
What Are Your Rights If Settlement Is Delayed?
In NSW, time is generally not “of the essence” in property contracts unless a Notice to Complete is served. This notice requires settlement within a reasonable timeframe, often 14 days. If settlement still doesn’t occur, the other party may seek to terminate the contract or claim compensation.
For more information on what a Notice to Complete is and how it works, check out our previous blog here.
How to Avoid or Manage Settlement Delays
Purchasers should liaise closely with their lender to ensure all finance paperwork is completed early. Vendors should promptly handle any repairs and keep their conveyancer updated on any potential issues.
If you anticipate a delay, contact your conveyancer immediately. They can help negotiate extensions, prepare Notices to Complete if needed, and manage any disputes.
How We Can Help
At Bangalow Conveyancing, we specialise in smooth, timely settlements and work hard to prevent settlement delays across Byron Bay, Bangalow, Ballina, Murwillumbah, and Lismore. Our experienced team ensures clear communication and legal accuracy from start to finish.
If you found this blog helpful, don’t forget to check out our other informative blogs.
