Legal implications and risks of a delayed property settlement

When purchasing or selling a property, the final stage in the process is settlement wherby the property is transferred from the vendor to the purchaser in exchange for the balance of the purchase price being paid to the vendor. The settlement period in NSW most commonly goes for 42 days, beginning on the day the contract for sale is exchanged and ending on the date when ownership is officially scheduled to change hands. But what happens when there is a delay to settlement? And what can cause this delay? In this article, we explore the legal implications and risks of a delayed property settlement.

What can cause delayed settlement?

The property purchase process involves various legal, financial and administrative tasks with all parties involved, such as agents, property lawyers/conveyancers and banks working hard to ensure a smooth property transaction. Unfortunately, issues can arise that prevent settlement from taking place on time.