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You’re outside your new townhouse in Northcote, the boot packed, the removalists circling the block, and your phone glued to your hand. Settlement was meant to be late morning. It’s now mid afternoon and you still don’t have a confirmed key time.
When a settlement stalls, it feels like the whole city is moving except you. Most of the time, nobody has done anything ‘wrong’. Electronic settlement is a chain of steps, run through an online workspace, with banks, lawyers, conveyancers and the land registry all needing to line up. If one link slips, everything pauses, just like plenty of other common settlement delays buyers run into across Melbourne.
This guide is for Melbourne buyers who want to understand what can go wrong with PEXA, what it tends to look like on the day, and how to plan so a delay is a headache, not a disaster. It’s general information only, not legal advice for your situation.
What is PEXA?
PEXA is the main electronic platform used for property settlements in Victoria. Instead of everyone meeting to swap cheques and signed papers, the parties prepare, sign and settle online. The money moves electronically, and the transfer documents are lodged for registration with Land Use Victoria. If you’d like a fuller walk through, you can read more about the electronic conveyancing process and how it fits into a standard Victorian purchase.
Because most Victorian property settlements run electronically, there usually isn’t a paper fallback you can switch to at the last minute. If the workspace can’t settle at the booked time, settlement is delayed until the issue is fixed and the parties can rebook.
The two big reasons settlements don’t complete on time
Most PEXA settlement problems sit in one of these buckets.
A system disruption
Sometimes the PEXA platform has a disruption, either full or partial. Other times the issue sits with a connected system, such as a bank service or the registry connection. From a buyer’s point of view, the outcome is the same: the settlement can’t complete until the system is back, or the parties can follow an approved workaround.
These disruptions can be especially painful on Fridays. If a booking slips late in the day, there’s limited room to recover before the weekend.
A readiness delay
This is the more common one. Even if PEXA itself is running smoothly, settlement can’t complete until every party has done what they need to do. One missing document, one unsigned authority, or one figure that doesn’t match can hold the whole transaction up.
The most common PEXA settlement traps for Melbourne buyers
Bank timing and last minute approvals
Banks are often the biggest moving part. Your lender needs the right documents, the right checks and the right sign offs before it will release funds into settlement.
Delays often happen when:
loan documents or authorities were signed late or returned with a missing page
a condition on the loan hasn’t been ticked off (for example, insurance confirmation or a required document)
the bank hasn’t loaded the final settlement funds by the booking time
someone in the bank’s settlement team needs to recheck figures after a late change
Even if you’ve signed everything, the bank still has steps to complete. That’s why your conveyancer will keep chasing the bank in the days leading up, not just on the morning.
Settlement figures that don’t balance
PEXA is designed to stop settlement if the figures don’t match. That reduces risk, but it also means a small mismatch can block settlement until it’s corrected.
Common causes include:
council rates, water or owners corporation figures updated late
a last minute change to how the deposit is handled
an agreed credit for repairs that hasn’t been recorded correctly
a bank payout figure that changes close to settlement
You’ll usually be asked to transfer your contribution funds before settlement. If your family is helping with a gift, or you’re moving money between banks, allow extra business days. Large transfers can take longer than people expect, so it’s worth understanding how settlement fund transfers are typically handled well before settlement week.
Linked sales and purchases
Many buyers are selling and buying on the same day. If your sale is delayed, your purchase is at risk too, because your sale proceeds are part of the funds for your new home.
This is common with apartment owners upgrading, say moving from a Southbank unit to a house in Camberwell, or from a Brunswick apartment to a place further out near Glen Waverley. It can work well, but it needs breathing room. If you’re in this position, it’s worth reading up on the risks and planning tips for simultaneous settlements.
Practical ways to reduce the pressure include:
avoiding back to back booking times where you can
keeping your conveyancer across both matters early
having a plan if the sale settles late (for example, short term storage or accommodation)
Identity and signing steps left too late
Electronic conveyancing has strict identity and signing requirements. Your conveyancer will verify your identity and have you sign the right authorities. Your bank will have its own checks too.
Delays can happen when:
an ID document has expired
a name doesn’t match exactly across documents
a buyer is overseas or hard to reach on the day
a document needs to be re signed because something was missed
If you’re travelling, even for a short break, tell your conveyancer early. A missed call late in the day can slow everything down.
Registry lodgement issues and technical errors
Settlement and lodgement are linked. If the lodgement step can’t proceed at that moment, settlement may not complete, even if money is ready to move. Sometimes it’s planned maintenance. Sometimes it’s a temporary outage. Sometimes it’s a technical error in the documents that needs to be corrected.
This is one reason good conveyancers keep an eye on system status and don’t leave workspace preparation to the last minute.
Simple detail mistakes
A wrong account detail, an incorrect title reference, a name format issue, or a document uploaded to the wrong place can stop a workspace settling. It’s not dramatic, but it is common enough that early checking matters.
What it usually looks like on settlement day
If everything is ready, settlement can be smooth and quick. If something isn’t ready, you’ll usually see one of these patterns:
Bookings are set for a specific time, yet the workflow is building well before that. Your conveyancer will be checking that documents are signed, the figures balance, and your bank has marked itself ready. If one party is still completing a step, the workspace can sit in a queue until they catch up, then the booking may shift to a later slot once everyone is ready.
If you’re trying to map your move, it can help to understand typical PEXA settlement timing and where hold ups tend to appear.
If you’ve arranged a pre settlement inspection, aim to do it the day before, or early on the day with plenty of time. It’s much easier to deal with a small issue when you’re not watching the clock.
A short delay, same day: the missing item is fixed, a bank signs off, and the booking is moved to a later time slot.
A rebook to the next business day: more likely when the problem is found late, or a bank can’t complete its internal approvals quickly.
A longer delay: less common, but it can happen when documents need to be re prepared, or the parties disagree about adjustments.
Your conveyancer’s job on the day is to keep the moving parts coordinated. That includes talking to your bank’s settlement team, liaising with the other side, and keeping you updated in plain language.
One practical reminder: keys should only be released once settlement has completed. Agents are used to being asked for early release. If settlement hasn’t happened, early key release can create real risk.
The real costs buyers feel straight away
A delayed settlement isn’t just an annoying email. It can hit your wallet and your plans fast:
removalists charging waiting time or storage
extra nights of accommodation
lift bookings and loading dock rules in CBD and Southbank buildings that need to be changed
utilities and internet bookings that need to shift
the stress of a half packed home and a full day of phone calls
There can also be contract consequences. Many Victorian contracts allow default interest if settlement happens late. Some delays are straightforward and resolved quickly. Others need careful handling, so speak with your conveyancer before you agree to changes or start sending messages to the other side.
How you can reduce the risk of a blow up
You can’t control every moving part, but you can set yourself up for a calmer day.
Pick a settlement day with breathing room
Tuesday to Thursday tends to be easier to manage than Friday. If you’re buying at auction, the settlement date can be less flexible, but it’s still worth discussing options early.
Get your conveyancer involved early, even before you bid
In Melbourne, auctions move fast. A solid contract and Section 32 review before auction day can flag things that affect timing or risk, like special conditions, unusual adjustments, or issues that might need extra documents.
Don’t leave ID and signing to the final week
Book your verification of identity early. Sign documents when they’re ready. If your name has changed, or your ID is close to expiry, tell your conveyancer straight away so it doesn’t become a last minute scramble.
Keep your money plan simple
Ask your conveyancer when your final contribution is due and where it needs to come from. Keep funds in one account where you can, allow extra time for transfers, and confirm any family contribution early so your bank can process it.
Build slack into your moving plan
Try not to have the truck arriving at 11 am on the dot. Build a few hours of wiggle room, especially if you’re moving into a building with lift bookings, narrow laneways, or heavy traffic. Anyone who has watched a removalist truck queue near the CBD at peak hour knows how quickly a plan can slip.
Stay reachable
Keep your phone charged and close. If you’ll be in a meeting, on a flight, or without reception, tell your conveyancer in advance so a plan is in place.
If settlement is delayed, what should you do?
Start with your conveyancer. They can tell you what caused the delay, what the next realistic time window is, and what steps are being taken.
A few practical tips:
Don’t arrange key collection until you have confirmation settlement has completed.
If you’re in a chain, tell your conveyancer about your pressure points (handover deadlines, lease end dates, school pickups).
Keep notes of extra costs in case they’re relevant later.
Try not to agree to changes in writing without advice. A quick message can create confusion at the worst time.
Get help before settlement day
At Pearson Chambers Conveyancing, we handle Victorian electronic conveyancing every day. Our focus is preparation, clear communication and steady management on settlement day, including when a system disruption or bank delay puts things under pressure.
If you’re buying in Melbourne and want peace of mind, contact Pearson Chambers Conveyancing for a complimentary Section 32 contract review.
Email contact@pearsonchambers.com.au.
This article is general information only and isn’t legal advice.