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Settlement is the moment the balance of the price is paid, title transfers to the buyer, and possession passes unless you have agreed otherwise. In Victoria the settlement period in the contract is commonly 30, 60, or 90 days, though it is negotiable between the parties.
You have an offer accepted, the champagne is chilling, and the boxes are ready by the front door. Now the real question: when do the keys actually change hands? In Victoria, your settlement date sits at the crossroads of law, banking, government systems, and plain old life admin. Get it right and settlement day feels like a well timed tram, gliding in exactly when expected. Get it wrong and you can end up rolling the time slot, paying penalty interest, or camping out with the cat at your parents' place.
This guide breaks down the levers that set, nudge, or derail a settlement date in Melbourne, with practical tips to keep your move on track.
Understanding Settlement in Victoria
These days, virtually all Victorian settlements run electronically in PEXA, where your conveyancer, the other side's representative, the banks, and the State Revenue Office all collaborate in a single workspace.
Key Factors That Determine Your Settlement Date
1. The Contract You Sign
Settlement period: Your contract nominates a calendar date or a number of days from the contract date. Buyers and sellers can negotiate this before signing, so if you need time to sell, renovate, or wrangle school terms, this is where you set the runway. Consumer Affairs Victoria notes the seller sets the date in the contract, but the period is usually 30 to 90 days and can be negotiated.
Conditions that push the timeline: Subject to finance, building and pest, sale of an existing home, or developer milestones for off the plan purchases can all influence when settlement occurs.
If a date lands on a weekend or public holiday: The standard position is that settlement occurs on the next business day. This reflects industry practice and is reinforced by practitioner guidance.
2. Banking and Finance Readiness
Unconditional approval takes time: Pre approval is not the same as unconditional approval. Lenders need valuations, final documents, and compliance checks. If the buyer's loan is not ready, settlement cannot complete.
Discharge of the seller's mortgage: The vendor's bank must prepare a discharge and be ready in the electronic workspace. This is a frequent source of delay, especially if the discharge request is lodged late.
PEXA windows and cut offs: Settlements occur on business days during set hours. Public holidays affect financial settlement and lodgement availability in the PEXA environment, so your chosen day must be one where services are available. You also cannot change the time at the last minute inside certain cut off limits.
Melbourne tip: For inner city moves, check lift bookings and loading docks, especially in Docklands, Southbank, and the CBD. Building managers often restrict move in windows and require protective covers for common areas. Aim for a late morning settlement time so you can collect keys, get the lift, and be on the road before the afternoon crush.
3. Government and Compliance Requirements
Stamp duty collection via Duties Online: In Victoria, duty is prepared and certified in Duties Online, then paid through the electronic settlement workspace at settlement. This replaced older practice where duty could be paid after settlement. If your matter is a complex duty case that needs State Revenue Office assessment, SRO requires you to set a settlement date at least 30 days into the future, which can dictate or lengthen your timeline.
Title and lodgement framework: Land Use Victoria has moved fully to electronic lodgement. Paper certificates of title are being phased out, so ensuring the correct e title control is in place with the lender and that all electronic dealings are properly prepared is essential for on time settlement.
Rates and outgoings adjustments: On the day, council rates, water, and owners corporation fees are adjusted, which means your practitioner needs accurate figures from authorities. Consumer Affairs Victoria frames settlement as the point where outgoings are adjusted and possession changes, so late certificates or updated balances can cause last minute edits to the financials.
4. People and Logistics
Key handover: Agents will not release keys until settlement ticks over in PEXA. A mid morning or midday slot usually gives enough time for any minor rollover then still lets you collect keys the same day.
Removalists and lift bookings: In many Melbourne apartment buildings, you must book the goods lift days ahead and supply insurance certificates. A Friday afternoon booking on an end of month date can be risky.
Simultaneous sale and purchase: If you are selling and buying on the same day, set the sale to settle earlier. If either side rolls, you need a buffer, or a bridging facility to cover the timing gap. Consumer Affairs Victoria's guidance for sellers notes bridging loans can help if your purchase settles before your sale.
How Public Holidays, Weekends, and Cut Offs Affect Your Date
Victoria has its own public holiday calendar, including the Friday before the AFL Grand Final in most years. On public holidays there may be no PEXA financial settlement or lodgement services for Victoria, so files scheduled on those days must move. If a contractual settlement date falls on a weekend or public holiday, it rolls to the next business day.
Even on normal business days, you cannot push through last minute changes without consequence. In PEXA, changing the date removes signatures on the financial settlement statement and certain time of day changes are blocked close to cut off, which is why your practitioner will warn against tinkering hours before settlement.
What Happens When Things Are Not Ready
Delays can trigger contractual consequences. Under the LIV/REIV standard contract, the innocent party may issue a default or rescission notice requiring remedy within a specified period, with interest and reasonable costs payable. If the default is not fixed in time, the contract can be ended according to the general conditions. The Legal Practitioners' Liability Committee explains how such notices operate under general condition 35 of the LIV contract.
Penalty interest, if applicable, is set by the contract particulars rather than a fixed law wide rate. It accrues daily on the outstanding balance until settlement occurs. Your conveyancer can calculate this to the cent and add it into the final statement.
If a matter fails purely for system or banking readiness reasons, your representatives can often "roll" the PEXA time slot to a later window that day or to the next business day. That still risks interest, extra accommodation costs, removalist change fees, and quite a bit of stress.
Checklist for Choosing a Realistic Settlement Date in Melbourne
For Buyers
Talk money early: Ask your broker or bank for an honest timeframe to go from pre approval to unconditional approval, and from approval to clear to book settlement. Build that into your preferred period.
Check the calendar: Avoid long weekends, end of month Fridays, and the pre Christmas crunch. Public holidays restrict PEXA services and agency availability.
Pick a time that works on the ground: A late morning slot gives room to resolve minor hiccups, then collect keys and meet your removalist in the early afternoon.
If buying an apartment: Book the lift, arrange the certificate of currency for insurance if required by the owners corporation, and check any move in rules posted by the building manager.
For Sellers
Submit mortgage discharge requests early: Vendors often underestimate how long banks need. Ask your lender for its discharge lead time and diarise it.
Keep the workspace tidy: When your practitioner asks for updated rates, water, and owners corporation balances, respond quickly so the financial statement can be finalised without last minute edits.
Plan for settlement day: Have utilities reads arranged if requested, leave manuals and spare keys, and set a clear time for key handover with the agent once the workspace says "settled".
If You Are Selling and Buying
Structure your day so that the sale settles before the purchase. If dates cannot be aligned, talk to your broker about bridging. Consumer Affairs Victoria highlights bridging facilities when purchases complete before sales.
Government Requirements You Cannot Ignore
A surprising amount of settlement timing comes down to what government rails can and cannot do on a given day.
State Revenue Office: Duties Online pushes duty figures and verification straight into the electronic workspace. For complex cases that need manual SRO assessment, build in at least 30 days from when you submit, because the SRO requires the settlement date you choose in the workspace to be at least 30 calendar days away.
Land Use Victoria: With electronic titles and lodgement, your practitioner must ensure the correct party has control of the e title and that instruments are digitally signed. The move away from paper titles is well advanced, which changes the practical steps but not the need to be organised.
Settlement Timeline: Buyer and Seller Guide
Eight to Ten Weeks Out (If You Can)
Agree on a settlement period that your bank can meet. If your matter looks like a complex duty case, choose a date that respects the 30 day SRO assessment requirement.
Four to Six Weeks Out
Buyers to progress unconditional approval and valuation. Sellers to lodge discharge with their bank. Both sides to finalise any special conditions that affect the timeline, such as works to be completed or vacant possession.
Two to Three Weeks Out
Your conveyancer will chase updated rates and owners corporation amounts, confirm water authority arrangements, and assemble adjustments.
One Week Out
Confirm removalists and lift bookings. Buyers to check the settlement time window suits key collection and move in plan. Everyone to avoid diary clashes with public holidays.
Day Before
Final inspection. Clarify key pick up details with the agent. Keep your phone on for any last tiny tweaks to the financials.
On the Day
Your practitioner monitors the PEXA workspace. If there is a hiccup, they may roll the time slot to a later window, although late changes can be restricted close to cut off. Keys are released once the workspace confirms settlement.
Common Melbourne Settlement Questions
Can We Settle on a Saturday?
No. Financial settlement occurs on business days. If your contractual date falls on a weekend or public holiday in Victoria, it moves to the next business day.
Is Stamp Duty Paid After Settlement?
Not in electronic conveyancing. Duties Online feeds the duty amount into the workspace and it is remitted through the electronic settlement. For complex assessments, you must set a date at least 30 days out to allow the SRO to process it.
What If the Other Side Is Late?
Your contract sets out steps. The non defaulting party can issue a default or rescission notice, require interest and costs, and end the contract if the default is not fixed in time. Your practitioner will guide you on the exact timing and wording.
Real World Examples from Around Melbourne
Young family upsizing in Preston: They picked a 60 day settlement to ride out school term and give their bank time. They booked a 12 pm slot to collect keys before school pick up and reserved their new building's lift for early afternoon. Smooth as you like.
Seller moving bayside to a unit in St Kilda: The vendor's discharge request went in late, and the bank was not ready by 10 am. The file rolled to 2 pm, then to the next business day. There was no drama because the parties agreed to a one day licence for access to the garage. That practical goodwill saved penalty interest and a removalist re booking fee.
Buyer of an off the plan apartment near Southbank: Registration of the plan was delayed by the titles office, so the trigger date for settlement moved. Their conveyancer kept the bank warm and negotiated a revised time once the plan registered. The keys were in hand two days later.
How to Choose and Protect Your Settlement Date
Start with what the contract allows and be realistic about your lender's pace.
Check Victoria's public holidays and the building logistics at your new address.
Give your practitioner what they ask for quickly, so the financials can be locked in.
If you are juggling a sale and a purchase, settle the sale first or line up bridging.
Aim for a late morning time slot. It leaves breathing space for life's little surprises.
When you line up the legal rails, the bank rails, and the human rails, settlement day becomes just another date in the diary rather than a white knuckle ride down the Monash.
Need a Calm, Experienced Hand on Your Settlement?
Pearson Chambers Conveyancing helps Melbourne buyers and sellers set sensible dates, avoid last minute rollovers, and keep penalty interest at bay. We also offer a complimentary Section 32 contract review before you sign, so you can negotiate timeframes with confidence.
Email: contact@pearsonchambers.com.au