Common Delays in Property Settlements (And How to Avoid Them)

Property settlement is the final step in buying or selling a home when the legal ownership officially changes hands. But just because settlement is scheduled for a certain day doesn’t mean it always goes to plan. Delays can (and do) happen and they can be stressful, costly, and frustrating. The good news is that many of these delays are avoidable with the right preparation and advice. In this blog, we’ll walk you through the most common causes of settlement delays in NSW and how to avoid them for a smooth, stress-free transaction.

What is Property Settlement?

Settlement is when the buyer’s lender transfers funds, the seller receives payment, and the property is legally transferred into the buyer’s name. It usually happens 4 to 6 weeks after contracts are exchanged, but the exact timeframe is agreed by both parties.

Common Delays That Can Impact Settlement

1️⃣ Finance Not Being Ready

Problem: The buyer’s bank hasn’t finalised the loan or released the funds in time. Why it happens:

• Last-minute changes to the loan

• Missing documents or verification delays

• Bank processing backlogs

✅ How to avoid it:

• Get pre-approval early

• Work with your broker or lender closely

• Respond quickly to bank requests

2️⃣ Errors in Legal Documents

Problem: Contract details, loan documents, or transfer forms contain mistakes (e.g., name spelling, incorrect dates, wrong title reference).Why it happens:

• Rushed paperwork

• Miscommunication between parties

✅ How to avoid it:

• Use a qualified conveyancer like SL Conveyancing to check and prepare all documents

• Review all paperwork carefully before signing

3️⃣ Bank Delays in Discharging the Seller’s Mortgage

Problem: The seller’s bank hasn’t released the mortgage in time for settlement. Why it happens:

• The discharge wasn’t requested early enough

• Bank processing delays

✅ How to avoid it:

• Sellers should complete a Discharge Authority Form as soon as contracts are exchanged

• Confirm timelines with your lender

4️⃣ Unpaid Rates or Outgoings

Problem: The council, water provider, or strata manager hasn't supplied up-to-date statements, or rates haven’t been paid. Why it happens:

• Late paperwork

• Missing rate notices

• Strata office delays

✅ How to avoid it:

• Your conveyancer will request adjustments early

• Ensure rates and levies are up to date

5️⃣ Last-Minute Issues After Final Inspection

Problem: The buyer finds damage or something missing during their final inspection. Why it happens:

• The seller has removed fixtures that were part of the contract

• The property isn’t in the agreed condition

✅ How to avoid it:

• Sellers: Leave the property clean and in the same condition as when it was sold

• Buyers: Do your final inspection a few days before settlement so any issues can be resolved early

6️⃣ Technology or PEXA Platform Issues

Problem: Delays in the online settlement platform (PEXA) due to technical issues or human error. Why it happens:

• Incorrect details entered

• Late document uploads

• System errors

✅ How to avoid it:

• Use an experienced conveyancer familiar with digital settlements

• Double-check details early in the process

Top Tips to Keep Settlement on Track

✔ Choose a reliable conveyancer who communicates clearly and works proactively✔ Stay in close contact with your bank or mortgage broker✔ Be organised and responsive with paperwork✔ Allow some buffer time when booking removalists or planning your move

SL Conveyancing: We Help You Avoid Settlement Delays

At SL Conveyancing, we know how important it is to get your property settlement done right and on time. We’ll:✅ Chase up banks, councils, and all parties involved✅ Double-check every detail to prevent last-minute issues✅ Keep you updated every step of the way

📞 Ready to buy or sell property in NSW? Contact SL Conveyancing today for a smooth, stress-free settlement.