Auction Settlement Period Victoria

Buying at auction is an adrenaline rush: gavel up, heart racing, and then if you're the highest bidder reality hits. You've just entered an unconditional contract. One date on that contract matters more than any other: the settlement date. In Victoria, choosing the right settlement period can be the difference between a smooth hand over of the keys and a last minute scramble that costs you money and sleep. This guide unpacks how settlement periods work at auction, what you can and can't negotiate, and practical steps to keep the process on track.

What is a Settlement Period?

Think of the settlement period as the runway between "sold" and "moved in". It starts the day both parties sign the contract of sale and ends on the settlement date, when:

• the buyer pays the balance of the price
• legal title transfers
• the agent releases the keys

During the runway your conveyancer, the seller's conveyancer and both banks are busy checking titles, arranging loan funds, calculating rates and water adjustments, and lining up with the electronic PEXA workspace. You'll also be booking movers and organising insurance.

How Long Is "Normal"?

In Victoria the vendor usually offers 30 , 60 or 90 day settlement options, with 60 days the most common because it gives banks and buyers enough breathing space without dragging on too long.

Occasionally you'll see 45 days or even 120 days on a rural block, but those are the exceptions.

Why the Length Matters

Finance approval – Banks often need extra documents after auction before giving formal approval. Short settlements leave no margin if your lender's backlog balloons.

Selling another property – If you're relying on proceeds from your current home, you'll want the two settlements to dovetail.

Logistics – Trades, cleaners, removalists: they all book weeks ahead, especially around Christmas or school holidays.

Land transfer duty – Duty is payable within three months of settlement, but most buyers pay on the day. A longer window gives you time to marshal funds.

Who Picks the Date?

The vendor sets the proposed settlement period in the contract. By raising your paddle you accept all terms on display, including the settlement date. Once the hammer falls, you can't ask for extra time unless the seller agrees in writing.

That's why seasoned buyers arrive at the auction knowing the date works for them or they've already negotiated a variation.

Can You Negotiate a Different Period? Yes But Before Auction Day

If 30 days is too tight or 90 days too long, talk to the agent well before auction. Your conveyancer can:

• Draft a simple variation clause (for example, "Settlement: 60 days or such other date as the parties agree in writing")
• Email it to the vendor's solicitor
• Make sure both parties sign the amended contract before bidding

Documented amendments avoid confusion at the auction table and will be accepted by the auctioneer when you sign. The key is timing: get the variation cleared at least 48 hours pre auction.

What Happens During the Settlement Window?

Behind the scenes both conveyancers prepare the Statement of Adjustments so rates, water and body corporate fees are split fairly to the day.

What If You Miss the Date?

Victorian contracts adopt General Condition 25 or Table A, which slaps the defaulting party almost always the buyer with penalty interest, usually 2% above the statutory rate.

On a $1m purchase that can be roughly $550 per day until you settle. Worse, the seller may serve a notice to complete and ultimately rescind the contract, keeping your 10% deposit.

Since a 2020 Supreme Court decision, the State Revenue Office also treats late settlement interest as dutiable consideration, meaning extra land transfer duty may be payable.

In short: don't be late.

Your Section 32 Vendor Statement

Before you even think about bidding, your conveyancer should dissect the Section 32. It discloses zoning, building permits, rates, owners corporation fees and any easements. If it's not supplied ahead of signing, the buyer can rescind at any time before settlement and recover all money paid.

Reviewing it early helps you decide whether the standard settlement window is realistic especially if there are unresolved permits or subdivision issues that could delay finance.

Seven Tips for a Smooth Settlement

1. Get written loan pre approval that covers the property type and price bracket
2. Check lender turnaround times some majors blow out to four weeks in spring; a broker can steer you to a faster option
3. Book building and pest inspections before auction; you won't get a finance or inspection clause afterwards
4. Negotiate the settlement period early if your funds rely on selling your own home
5. Insure the property from 5pm on auction day; most contracts pass risk to the buyer at signing
6. Stay in weekly contact with your banker and conveyancer so paperwork doesn't languish on someone's desk
7. Arrange utilities and movers with a buffer avoid moving vans at 11am on settlement day in case banks run late

How Pearson Chambers Conveyancing Keeps You Ahead

Based in Melbourne's CBD, our licensed conveyancers live and breathe Victorian auctions. We:

• Review Section 32 statements within 24 hours so you can bid with confidence
• Flag unrealistic settlement dates and negotiate alternatives
• Track your lender's progress and chase certificates to avoid last minute hiccups
• Calculate adjustments and draft PEXA workspaces early, giving every party clear numbers days in advance

All work is handled locally no call centre scripts, just practical guidance from people who know the local market.

Ready for a Stress Free Settlement?

Whether you're eyeing a Carlton terrace or a Point Cook family home, lock in professional support before auction day. Call Pearson Chambers Conveyancing on 03 9969 2405 or email contact@pearsonchambers.com.au for a free Section 32 review and straight talk advice on settlement strategies. We'll make sure the only surprise on settlement day is how easy it feels.