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It’s 3.45 pm on a Friday and you’re standing outside a townhouse in Kensington with the boot full of boxes. The agent has the keys ready… then the call comes through: settlement hasn’t gone through yet.
When a Melbourne settlement slips, it rarely feels ‘minor’. Removalists are booked, your lease is ending, school term is around the corner, and your bank is asking whether funds have been drawn. A delay can be caused by something boring (a bank processing backlog) or something serious (a title issue that needs fixing). Either way, the first few hours matter.
This guide is general information about Victorian conveyancing. Every contract is a little different, so treat this as a practical map, then lean on your conveyancer for advice that fits your deal.
What ‘settlement delayed’ really means in Victoria
Settlement is the legal handover. Money moves, documents are exchanged, and the transfer is lodged so ownership can be recorded with the land registry. It’s also the point where the buyer pays the balance of the price and, unless you’ve agreed something different, takes possession.
Many Victorian settlements are handled electronically through an approved network, which is usually smooth, until one party or one system isn’t ready.
A delay usually means one of three things:
The parties can’t complete at the booked time (funds, documents, or workspace steps aren’t ready).
Settlement is pushed to later the same day by agreement.
Settlement is pushed to another day by agreement (sometimes called a rollover).
The important bit: the settlement date in the contract is meant to be met. Under the standard Victorian contract, time is treated as being ‘of the essence’, which is lawyer talk for ‘the date matters’. If there is no agreed extension and settlement doesn’t happen, the party who can’t settle can be in default, with costs that start adding up fast.
Why delays happen so often in Melbourne
Most delays aren’t dramatic. They’re the messy edges of a busy property market.
Bank timing: loan funds aren’t released in time, the discharge of mortgage hasn’t been processed, or someone is waiting on a last minute sign off.
Linked deals: your sale needs to settle to fund your purchase (common for upsizers moving from the inner north to the east, or downsizers heading bayside).
Last minute figures: council rates, water rates, owners corporation fees, land tax adjustments, or a payout figure arrives late.
Final inspection surprises: damage, rubbish left behind, missing inclusions, or a ‘that wasn’t like that at the open’ moment.
Electronic settlement hiccups: a party is late to sign, a limit is wrong, or a system outage throws everyone off schedule.
Friday is the classic danger zone. Everyone likes a Friday settlement because it suits moving plans, yet it leaves almost no breathing space if something goes sideways late in the day.
The money and stress you’re trying to avoid
A delayed settlement can trigger:
Default interest or penalty interest under the contract
Extra legal costs if notices need to be prepared and served
Practical costs like storage, another round of removalists, short term accommodation, or extra days of childcare juggling
On top of that, delays can strain the relationship between parties, especially when there’s a chain of settlements and everyone’s blaming everyone else.
So what should your conveyancer do, right now?
Action 1: Triage the delay and work out who is actually stuck
The first job is a quick, calm diagnosis. Your conveyancer should identify:
Which side cannot complete (buyer, seller, one of the banks, or an external system)
Whether the problem is a timing issue or a legal issue
Whether you are at risk of being treated as in default under the contract
This sounds simple, yet it’s where good conveyancing shows. A ‘bank is running late’ delay needs a different response to ‘the seller can’t provide a discharge’, and both are different again to ‘there’s a title dealing that needs sorting’.
A practical way to think about it is a traffic light check:
Green: a short delay that can be fixed quickly, with everyone willing to work together.
Amber: a delay that may need a same day change of time, or a formal written agreement to move the date.
Red: a delay where one party is not ready, cannot say when they will be ready, or refuses to co operate.
If you’re the buyer, your conveyancer should also check whether you have done everything on your side. Are signed loan documents back with the lender? Have you transferred the shortfall funds? Are your ID checks and signing steps complete?
If you’re the seller, the checks look different. Has your mortgage discharge been lodged early enough? Is the payout figure still valid? Are you in a position to deliver clear title at settlement?
Action 2: Get the right people on the phone fast, then confirm in writing
Delays grow in the dark. The fix is fast communication and written confirmation.
Your conveyancer should contact, as a minimum:
The other party’s conveyancer or solicitor
The lender(s) involved
The selling agent (for key arrangements and buyer seller communication)
Anyone else in the chain if your matter is linked
Then, once the immediate plan is clear, your conveyancer should send a short email to confirm what was said and what is agreed. A simple ‘We confirm settlement could not complete at the booked time due to X. The parties have agreed to attempt settlement at Y’ can save real arguments later.
This is also where your conveyancer should set expectations with you. If you’re sitting in a café on Sydney Road waiting for keys, you need to know whether you should keep waiting, re book the moving truck, or sort a Plan B for tonight.
Action 3: Build a clean paper trail while the details are fresh
When settlements fail, memory gets fuzzy fast. A week later, people ‘recall’ it differently. Your conveyancer should create a tidy record of:
The reason settlement did not complete
The time the issue was discovered
What steps were taken and by whom
Any agreement to change time or date
Any costs being claimed or reserved
This isn’t about being combative. It’s about protecting you if a dispute lands later, especially around default interest or costs.
Where the delay relates to electronic settlement, it’s also sensible to keep copies of key messages and confirmations, so there’s evidence of what was happening at the time.
Action 4: Push for a practical fix, not a fight
Most Melbourne settlement delays can be solved without anyone going nuclear. Your conveyancer should look for practical options that keep the deal alive and reduce cost exposure.
Common solutions include:
Same day extension of time: when the issue is a bank drawdown or last minute document check.
Formal agreement to move the settlement date: when the fix won’t happen today.
Short retainers or adjustments: when the delay is tied to a small property issue, such as rubbish removal or a minor repair, and both sides are willing to settle and sort it straight after.
The key is that any change should be confirmed in writing. Handshake arrangements through an agent are where trouble starts. If the deal is moving to another day, your conveyancer should also consider the knock on effect for your moving plans and any linked settlement in the chain.
A Melbourne example we see often: a buyer selling a unit in Brunswick East to fund a family home in Doncaster. If the sale settlement runs late, the purchase settlement is in danger too. Quick co ordination between both matters can be the difference between a stressful afternoon and a complete mess.
Action 5: If the delay won’t be fixed quickly, protect your rights with the right notice
Sometimes the other side won’t co operate, or the delay is serious enough that you can’t just ‘push it to Monday’ and hope for the best. In that case, your conveyancer should advise on the formal steps in the contract.
Under common Victorian contract conditions, a party in default may be served with a written default notice requiring the default to be remedied within a set period (often 14 days, depending on the contract and the circumstances). Notices need careful wording and proper service. Getting this wrong can create more risk than doing nothing.
Two practical points for real life:
If you are the party who can’t settle, early negotiation of a written extension can be cheaper and kinder than waiting for a notice to arrive.
If you are ready to settle and the other side is not, moving promptly can reduce the time you carry uncertainty and costs.
Either way, this is the stage where you want a conveyancer who is organised and decisive, because the contract steps matter.
What you can do while your conveyancer is working
A conveyancer can’t magic money out of a bank, yet you can help speed things up.
If you’re buying:
Keep your phone on and check email, especially if the lender needs a last minute confirmation.
Make sure your shortfall funds are ready and transferred in the way the lender requires.
Don’t sign anything new or agree to anything through the agent without running it past your conveyancer.
If you’re selling:
Confirm with your lender early that the discharge process is underway.
Keep the property accessible in case a quick re check is needed.
If you’ve promised vacant possession, make sure the place is truly empty and clean, so the buyer has less reason to hold things up.
And for everyone: breathe. Settlement day stress is real. It’s also a day where a calm head usually saves money.
How good conveyancing planning reduces delay risk
If you’re reading this before your settlement date, you can stack the odds in your favour.
Avoid late day Friday settlements where you can. Mid week often leaves more room to fix surprises.
Chase the lender early. Loan documents, ID, and signing steps should be done well before settlement week.
Treat the final inspection seriously. If something is wrong, raise it early, not at 4 pm on settlement day.
Check the Section 32 and contract early. Many settlement problems are born at the start, when documents are unclear or special conditions aren’t understood.
Good conveyancers are proactive. They don’t just wait for settlement day and hope.
A quick Melbourne reality check
Delays can happen even when everyone is trying to do the right thing. Banks have cut off times. Agents have key release policies. Moving trucks don’t wait. The aim is not perfection, it’s damage control with a clear plan.
If your settlement is delayed, you deserve a conveyancer who acts quickly, communicates plainly, and protects your position while keeping the deal moving.
Need help with a delayed settlement, or want to prevent one?
If you’re staring down a delayed settlement, or you’d like someone to check your contract before you’re committed, speak with Pearson Chambers Conveyancing. We’ll look at the documents, flag the risks, and guide you through the next steps. We also offer a complimentary Section 32 contract review.