Everything you need to know about delayed or cancelled settlements

Find out how the common causes for settlement delays and cancelled sales and what penalties might apply if you’re affected.ON THIS PAGEWhat does it mean for settlement to be delayed?Common reasons for settlement to be delayedCan you change the settlement date on a property sale?Can you cancel a contract of sale agreement before settlement?What are your rights when settlement is delayed?

All home buyers hope for smooth sailing when they purchase a property, but not everyone can be so lucky. The transaction isn’t done until the fat lady sings – that is, settlement is complete and ownership is officially transferred.

Unfortunately, delays – and even cancellations – can occur and they can be costly. Whether it’s a paperwork mishap, financial issue, or a problem with the property, a delayed settlement can create headaches for everyone involved.

What does it mean for settlement to be delayed?

Settlement is the final step in a property transaction. How much time passes between an offer being accepted and settlement occurring is normally between 30 and 90 days. The specific length is generally agreed upon when the seller accepts the buyer’s offer.

On settlement day, representatives of both the buyer and seller will come together – often virtually – to ensure the transfer of legal ownership over the property. This involves:

• Transferring the property title
• Exchanging funds, often with the assistance of a home loan lender
• Finalising any remaining sale formalities

With so many moving parts and multiple parties involved, it’s not surprising that delays happen.

While a minor delay might seem harmless, the impacts can be significant.

• For sellers
  Settlement delays may mean continuing to pay rates, insurance, and mortgage repayments on a property they didn’t plan to still own. Sellers may also be relying on the promised funds for their next property purchase or other financial plans.
• For buyers
  Delays can leave buyers paying rent longer than expected, losing deposits on removalists or storage, or even facing temporary homelessness if they’ve already ended their lease.

Common reasons for settlement to be delayed

Settlement delays can stem from a variety of factors, including:

1. Financial issues

• Home loan applications being denied or not finalised in time
• A late provision of funds by the lender
• Issues with the buyer’s financial situation or documents

2. Documentation errors or delays

• Incorrect or missing paperwork, such as legal forms or contracts
• Title issues that need to be resolved before settlement can occur

3. Property-related problems

• Unresolved repairs or damages identified during pre-settlement inspections
• Issues with the property’s condition that breach contract terms

4. Delays caused by third parties

• Conveyancers, lenders, or real estate agents running behind schedule
• Unexpected legal complications

5. The death of either party

• If the seller passes away before settlement occurs, the property’s legal status may be complicated, perhaps requiring estate management or probate processes
• If the buyer passes away before settlement, the transaction may or may not continue as expected and, if it continues to settlement, the property will make up part of the buyer’s estate

Suspect your settlement might be delayed? Here’s what to do

If you think you might miss your settlement date, it’s time to act fast and contact your team to explore solutions. Start by reaching out to your conveyancer or solicitor – they might have already flagged potential issues or can help you navigate the process.

How to address delays on your end if you’re the buyer

Delays caused by buyers generally stem from financing issues. If you think you might not be able to make settlement date for any reason, contact your home loan lender as soon as possible to explore next steps.

Be transparent with your legal team and lender to keep things moving – they may be able to secure an extension or provide alternative solutions.

How to address delays on your end if you’re the seller

If you’re selling a property and facing delays due to issues on your end, time is critical. Connect with your conveyancer and real estate agent to create an action plan to address the cause of the delay. Possible next steps might include:

• Booking tradespeople to fix last-minute property issues discovered during inspections
• Submitting missing documents or clarifying details with the buyer’s representatives
• Negotiating timelines with the buyer’s team

Can you change the settlement date on a property sale?

Contracts become legally binding when they’re signed by both parties. Yet, even after that, it’s still possible for one party to change the settlement date, but typically only if the other party agrees to do so.

If there’s an amicable agreement, the date can generally be changed without penalty. Bear in mind, neither party is under any obligation to agree to a settlement date change.

It’s best to document any agreed-upon changes in writing to ensure there’s a legal record of the change.

Here’s a rundown of details you might want to include in a paper trail:

• Exactly what the changes are
• Whether the other party has agreed to the changes
• Any consequences of making the changes
• Any costs associated with making the changes
• How both parties have agreed to resolve these costs

It’s worth noting the party that requests the date change or variation is typically the one that will pick up the tab for any associated costs.

Again, a conveyancer or solicitor is in the best position to provide advice on preparing and negotiating contract variations.

What if the other party doesn’t agree to change a settlement date?

If there isn’t an agreement to change the settlement date on a property transaction and one party can’t meet the original date, that party could face penalties and even risk the contract being terminated.

Again, it’s best to seek legal advice if you find yourself in any such situation. Sometimes your legal representative may be able to negotiate a change with the other party’s legal representative. In some cases, that may involve providing compensation or paying a penalty.

Extending settlement dates in Queensland

It’s a little easier to change the settlement date of a property transaction in Queensland, where contracts allow any party to extend the settlement date by up to five business days. This gives both parties the right to extend settlement without needing to provide a reason.

However, as a matter of courtesy, it’s best to advise all parties involved as soon as it’s apparent a settlement extension will be required. After all, they may need to postpone removalists, locksmiths, insurance policy dates, and the likes.

Can you cancel a contract of sale agreement before settlement?

Sometimes, a buyer or seller might find themselves with cold feet after signing a contract of sale.

Perhaps you’ve found a better property elsewhere or you’ve had an unexpected offer from a different wishful buyer.

Whatever the reason, you’re thinking about backing out of your agreement, where do you stand?

Are you in a cooling-off period?

Most states and territories apply a cooling-off period to private residential property sale contracts. It’s a window of time that allows the buyer (not the seller) to withdraw from a property sale and contract.

It’s also worth noting not all property sales come with a built-in cooling off period. The most notable exceptions are properties bought at auction.

The legal length (or even the presence) of a cooling-off period varies across jurisdictions:

State or territory	Cooling-off period
New South Wales	5 business days (10 business days if buying off-the-plan)
Victoria	3 business days
Queensland	5 business days
Western Australia	No mandatory cooling-off period, but buyers and sellers can add one to a contract.
South Australia	2 business days
Tasmania	Standard sales contracts include a tick box for an optional three day cooling off period.
Australian Capital Territory	5 business days
Northern Territory	4 business days

_{Correct as at 2 October 2025}

Even if they back out during the cooling-off period, the buyer may still be up for some form of penalty – generally 0.2% to 0.25% of the sale amount.

If you want a longer cooling off period, you might ask your conveyancer to include such in an offer letter. Though, this might turn sellers away.

Do you have a relevant contract clauses?

Some contracts allow for wiggle room, only becoming effective after certain happenings.

For example, many include a ‘subject to finance‘ clause, voiding the deal if the buyer can’t get a home loan. Some are ‘subject to building and pest inspections’ or ‘subject to sale’ of another property.

If a buyer needs to back out of a contract due to a happening they’ve included a clause for, you can generally do so without penalty.

Breaking a contract outside these protections

Once a contract of sale becomes legally binding, both buyer and seller are obliged to fulfill their obligations. That means, both parties must go through with the deal or face potentially substantial consequences.

For instance, if a buyer unduly pulls out of a contract of sale, the seller could keep their deposit and might be able to claim for damages if the property is subsequently sold for a lower price.

Though, there are generally exceptions if the seller significantly misrepresented something. Australian consumer law prohibits any seller from inducing a buyer into a contract through misrepresentation or by failing to disclose all necessary information.

Additionally, if a buyer reneges on a part of the deal – perhaps by not handing over their deposit or securing finance within a set window – the seller may be able to tear up the contract.

And, if both buyer and seller were to change their minds, the contract could be voided through mutual agreement.

What are your rights when settlement is delayed?

If you’re facing settlement delays caused by the other party in your property transaction, it’s important to know your rights and responsibilities. Further, if you or your representatives or responsibilities are behind any settlement delays, you should be aware of the potential liabilities and penalties you could face.

Many states allow a three-day grace period before either party is penalised for missing the settlement date, and quite a few allow one or both parties to issue a demand that the sale is settled with a set window.

New South Wales

Home buyers who find their sellers aren’t in a position to settle on the agreed date have limited rights in New South Wales. Though, after a certain point, it’s likely they can retrieve their deposit.

On the other hand, if the buyer is the reason for the settlement delay, the consequences can be significant. The vendor has the right to charge penalty interest for each day the settlement is deferred. They can also send a notice to complete and, if the buyer fails to settle within the given time period, they can tear up the contract and keep the deposit.

Victoria

In Victoria, buyers can demand their deposit back if settlement is delayed by more than 10 days. They could also ask for a license agreement, which would allow them to have early access to the property despite the delay.

Sellers, on the other hand, can charge penalty interest – how much is likely detailed in the contract of sale.

Queensland

Beyond Queensland’s given option to extend settlement by five days, buyers and sellers in Queensland can refuse requests to postpone the settlement.

As a buyer, you can argue for the sale to fall through if the seller isn’t ready to settle on by a legally reasonable date or agree to an extension during which the seller must pay interest to the buyer. 

If the buyer misses the settlement date, the seller has many of the same rights, can keep the buyer’s deposit if they fail to settle, and may even sue to recoup any losses.

South Australia

Buyers and sellers in South Australia have no obligation to accept the request of the other party to delay the settlement.

Inconvenienced buyers can demand sellers to comply and complete the settlement within a specified time, usually at least two weeks. If your vendor was not able to comply, you can compel them to pay penalty interest.

The same goes if the buyer is the party holding up the settlement, and if the contract is torn up, the seller can keep the deposit.

Western Australia

Buyers and sellers of Western Australian property can demand the party responsible for the settlement delay pays a rate of interest for each day they fail to settle.

They can also issue a notice allowing them to back out of the contract if settlement doesn’t occur within a certain time frame and, if the buyer is at fault, the seller can typically keep their deposit.

Tasmania

When settlement is delayed in the Apple Isle, the aggrieved party can issue a notice to complete. An additional 14-day time period is usually given for the party causing delays.

Otherwise, the party causing the delay may be forced to pay for losses incurred due to the deferment.

Australian Capital Territory

When either party to a property sale in the ACT misses the completion date, they have a week to get things back on track.

Typically, if the buyer is the cause of delays, they can be changed penalty interest after those seven days, while a normal sale contract will protect the seller in the event they’re the cause of delays.

Northern Territory

If property settlement is delayed in the NT, an extension can be granted.

If settlement still can’t occur due to the vendor, the buyer can demand they get their deposit back, plus interest.

If the buyer is at fault, they might be charged penalty interest.

_{Image by freepik}

First published in December 2024

Important questions before you upsize your home

 Denise Raward

Updated on 3 Jun 2025

Share

For many Australians, their first home isn’t their forever home. As families grow, many look to move to larger properties for extra space – but upsizing may not be the right move for everyone.ON THIS PAGEWhy upsize your home?Can you afford to upsize your home?Choosing the right propertyUpgrading your home? Don’t forget to upgrade your mortgageCalculating other costs of upgrading a homeFinancial strategy for upgrading: What you need to know

For many Australians, their first home isn’t their forever home. As families grow, many look to move to larger properties for extra space – but upsizing may not be the right move for everyone.

Why upsize your home?

If you’re looking to buy a larger home, the first question you need to ask yourself is why. Is it because you’ve added a child or two and need extra rooms, perhaps a yard, and more storage?

If you don’t have extra or growing children, maybe you’re planning to have them? Or have you always pictured yourself in a larger home?

Some upsizers assume a larger home will build more wealth in the future which can sometimes be the case, but not always.

Be clear on exactly what you’re wanting to achieve before you start looking for another home. Knowing your reason for moving will help you determine whether buying a larger home is a sound move for your circumstances.

In most cases, a larger home will mean a larger mortgage and if you have young children – or may be about to have them, those two things may not be compatible.

Can you afford to upsize your home?

This leads us to the important question of how much extra a larger home will cost you, particularly if you’ll need to increase the size of your home loan to purchase it.

You’ll also want to consider whether you need to sell your current home to fund a larger one. If you do, you’ll want to know how much equity you have in your current property, and how much of that can be put towards your new home.

If you’re planning to start (or add to) a family, you’ll need to take periods of reduced income during parental leave into consideration, as well as the possibility that at least one parent may not return to full-time work – at least while children are young.

Ask yourself how much of your income will need to be directed to the asset you’re living in. Too large a portion may put you under financial strain when you can least afford it, even if it may pay dividends when you eventually sell the property (if you do).

Our borrowing power calculator can help you assess where you stand with your finances, how much you may be able to borrow, and what monthly home loan repayments you may be up for.

Choosing the right property

If you’re a savvy homebuyer, you may think buying a property with an eye on renting it out in the future will get you the most out of your purchase.

However, good family homes don’t always make good investments. For those buying a home to live in, future capital growth typically sits lower on the list of priorities, below amenity and family needs.

Your list of requirements for a larger home may be more concerned with the number of bedrooms, proximity to good schools, outdoor play areas, and health facilities. If it’s space you’re after, you might also have to move to a less desirable location where property prices may not grow at the same rate as in more in-demand areas (but not always).

Upgrading your home? Don’t forget to upgrade your mortgage

Buying a larger, fancier, or generally more expensive home will likely also mean taking out a more sizeable mortgage.

Arranging a larger mortgage will follow the same process as taking out your existing mortgage (assuming you have one). However, your borrowing capacity (and therefore the risk you present to a lender) will need to be re-assessed, particularly if you’re looking at a loan-to-value ratio (LVR) of 80% or more.

Your record as a borrower will unquestionably affect your success as an upgrader.

Another key to upsizing is ensuring you’re not overstretching yourself and can meet higher home loan repayments alongside your other expenses. These might have grown alongside your family – at least in the eyes of your lender.

Also, beware of having an inflated view of the value of your existing home before you set out to upgrade. It’s wise to arrange a market appraisal with a local real estate agent although an official property valuation will likely give you a more accurate picture.

Calculating other costs of upgrading a home

Beyond mortgage repayments, other expenses associated with owning a home are usually higher for those who own larger properties. You’ll likely face higher utility bills, increased council rates, and considerably more maintenance costs.

There’ll also be the increased cost of stamp duty on a more expensive property. And when it’s not your first home, you can forget any first home buyer concessions or grants you may have previously received.

Then there are other expenses, including:

• Moving costs
• Costs to kick start your power, internet, etc.
• Possibly more lenders mortgage insurance (LMI)
• New furniture and fittings to fill the additional space

See also: How much does it cost to buy a house?

Financial strategy for upgrading: What you need to know

What happens to your home loan?

If you manage to buy and sell at the same time, the proceeds from your sale will likely make up part of what you pay for the new property. The rest will need to come from a lender.

See also: What to expect on settlement day

If you’re happy with your current loan and your lender offers a portability feature – allowing you to transfer your existing mortgage to another home – you can continue on the same home loan, perhaps topping it up in the meantime.

This strategy may also save you money on establishment fees and other home loan costs.

Can you take out a new mortgage?

Buying a new home can also be an opportunity to reassess the home loan market and see if you can secure a lower interest rate or better terms and conditions than your previous home loan.

While you may start by asking your existing lender what it can offer you, make sure you shop around too. Home loan products, rates, and features change all the time and some may offer competitive rates, special offer deals, or more attractive terms and conditions.

A mortgage broker can help you navigate the market if you’re feeling overwhelmed. Ideally, they should be able to match you with a home loan best suited to your needs.

See also: Things to ask your mortgage broker, and why

To kick you off, the table below features some of the lowest interest rate home loans currently available on the market:

Lender	Interest Rate	Comparison Rate*
		5.29% p.a.	5.33% p.a.	Owner OccupierVariablePrincipal & Interest10% Min DepositRedrawExtra Repayments	Available for purchase or refinance, min 10% deposit needed to qualify.No application, ongoing monthly or annual fees.Dedicated loan specialist throughout the loan application.	More details	Compare	Promoted	Disclosure
		5.24% p.a.	5.15% p.a.	Built and funded by CommBankOwner OccupierVariablePrincipal & Interest20% Min DepositRedraw	A low-rate variable home loan from a 100% online lender.Backed by the Commonwealth Bank.	More details	Compare	Disclosure
		5.39% p.a.	5.43% p.a.	Owner OccupierVariablePrincipal & Interest10% Min DepositOffsetRedrawExtra Repayments	Available for purchase or refinance, min 10% deposit needed to qualify.No application, ongoing monthly or annual fees.Quick and easy online application process.	More details	Compare	Promoted	Disclosure

Important Information and Comparison Rate Warning

What happens if you buy before you sell?

If you want to buy your dream home before your existing home is sold, you may have to consider taking out a bridging loan. A bridging loan can allow you to temporarily own both homes while you wait for your first one to sell.

Bridging loans are specialised mortgage products and can come with considerably higher interest rates than regular home loans so you’ll need to be prepared to take on the extra cost.

See also: Should you buy and then sell, or sell and then buy?

Be warned, this can squeeze you financially at a time when you’re already facing the usual costs of purchasing a home. It could even pressure you to make a quick sale on your existing home, which may lead you to sell it for less than you were hoping for.

There is no ‘right’ answer in the sell-then-buy or buy-then-sell conundrum. It’s advisable you go down the path that best suits your circumstances and the options available to you at the time.

Remember, a vital part of successfully upsizing is to keep your finances top of mind. A dream home can turn into a prison if you aren’t clear on your limits from the outset.

_{Image by Binyamin Mellish via Pexels}

First published in August 2022