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Simultaneous Settlement - How to Buy and Sell at the Same Time?
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Selling your home and buying a new one at the same time sounds impossible. But with the right strategy, a simultaneous settlement lets you move from your old home straight into your new one on the same day – no bridging loans, no double mortgages, and no storing your furniture in between.
Here’s how to pull it off without the stress.
Key Benefits to Simultaneous Settlement
- No need for bridging loans (which typically charge 2% higher interest rates)
- Move directly from your old home to your new home
- Use your sale proceeds to fund your purchase
- Avoid the stress and cost of double-handling your belongings
What Is Simultaneous Settlement?
A simultaneous settlement means both your sale and purchase settle on the same day. The funds from selling your existing property are immediately transferred to complete the purchase of your new home, all coordinated through digital settlement platforms like PEXA.
In Queensland, over 198,000 properties settled in 2024, with nearly 90% processed through digital settlement platforms. This digital process has made simultaneous settlements more achievable than ever before, as your conveyancer can coordinate both transactions in real time without meeting in person.
How Does Simultaneous Settlement Work?
On settlement day, several things happen simultaneously:
Your existing mortgage is paid out from the sale proceeds. Any outstanding council rates, water charges, and body corporate fees are adjusted. The remaining funds from your sale (plus any new loan funds from your bank) are transferred to complete your purchase. Legal ownership of both properties is transferred to the respective buyers.
Your buyers conveyancer and sellers conveyancer will coordinate all of this for you. You don’t even need to be present – in fact, you could be interstate when settlement occurs, as long as you’re contactable.
With digital settlements now mandatory in Queensland (since 20 February 2023), the entire transaction typically happens within minutes once all parties are ready. Your solicitor will notify you when everything’s complete, and you can collect the keys to your new home.
Getting the Timing Right: Buy First or Sell First?
The biggest challenge with simultaneous settlement is deciding which property to contract first.
Selling First
|
Pros |
Cons |
|
A clear budget for your purchase |
You might need temporary accommodation if you can’t find a new home quickly |
|
No risk of being stuck with two mortgages |
You’ll need to move twice |
|
Stronger negotiating position (you’re not desperate to sell) |
You could miss out on the perfect property |
Buying First
|
Pros |
Cons |
|
You can take your time finding the right property |
You’ll need to egotiate a ‘subject to sale’ clause (which many vendors reject in competitive markets) |
|
You can move at your leisure |
You risk carrying two mortgages if your sale falls through |
|
No rushed decisions |
You’ll need to have enough equity and income to qualify for both loans temporarily |
Most conveyancers recommend selling first if you’re in a strong market where properties sell quickly, or buying first if you have substantial equity and financial flexibility.
Three Strategies to Make Simultaneous Settlement Work
1. Request Extended Settlement Periods
Whether you’ve bought or sold first, negotiate a flexible settlement period of 90-120 days (or even up to 6 months). This gives you breathing room to secure the other transaction. Make it a condition of the second contract you sign that settlement must occur on the same day as your first contract.
In most cases, this is straightforward – your solicitor simply coordinates with the other party’s solicitor to align the dates. If the other party is hesitant, you may be able to offer a small monetary incentive to secure their agreement.
2. Include a ‘Subject to Sale’ Clause
If you’re buying first but haven’t sold yet, insist on a ‘subject to sale’ condition in your purchase contract. This protects you by making your purchase conditional on successfully selling your existing property.
Be aware that in Cairns’ competitive property market, some vendors may reject this condition if they have other interested buyers. However, if your property is in a desirable area and priced well, you may be able to demonstrate strong buyer interest to give the vendor confidence your sale will proceed.
3. Negotiate with Both Parties Simultaneously
Don’t lock yourself into one transaction before exploring the other. Work with your real estate agent and conveyancer to gauge realistic timeframes for both your sale and purchase. If you know your home will likely sell within 60 days, structure your purchase contract with a 60-75 day settlement period to align the dates.
Common Pitfalls to Avoid
Even with careful planning, simultaneous settlements can go wrong. Here’s what to watch for:
- Miscommunication between parties. Make sure your conveyancer, the buyer or seller’s solicitor, and your bank are all coordinating closely.
- Underestimating settlement costs. Beyond your mortgage, factor in stamp duty, conveyancing fees, and adjustments for rates and levies.
- Bank transfer delays. Large sums can take longer than expected to transfer between banks. Confirm transfer times with your lender at least 48 hours before settlement day.
- No backup plan. Sometimes sales fall through at the last minute. Have a contingency plan in place, whether that’s temporary accommodation arranged with family, short-term rental options, or access to bridging finance if needed.
What If Simultaneous Settlement Doesn’t Work?
If you can’t negotiate simultaneous settlement, you have alternatives:
Lease-Back Arrangement
Negotiate to rent your existing home back from the new owners after settlement. This lets you stay in your home while you finalise your purchase, though you’ll pay rent to the new owners.
Early Possession
In some cases, the seller of your new home may grant you early access before settlement. This is less common and typically requires the seller’s consent and additional insurance.
Bridging Loan
Your lender may offer a short-term bridging loan that “bridges” the gap between buying your new property and selling your old one. These loans typically charge higher interest rates (around 2% above standard home loans) and usually have a 12-month limit, but they can solve timing issues if your sale is delayed by a few weeks.
Why You Need an Experienced Conveyancer
Simultaneous settlements are complex. Your conveyancer coordinates with multiple solicitors, lenders, and real estate agents to ensure everything happens in the right order at the right time. They’ll manage the transfer of funds, the discharge of your existing mortgage, the lodgement of new title documents, and countless other details you’ll never see.
A simultaneous settlement might feel overwhelming to you, but it’s something your conveyancer handles regularly. Follow their advice, respond promptly to any requests for documents or information, and trust the process.
Planning a simultaneous settlement in Cairns? Our experienced conveyancing team has coordinated hundreds of same-day settlements across Far North Queensland. We’ll handle all the coordination with your lender, the other party’s solicitor, and settlement agents to make sure your sale and purchase happen seamlessly on the same day.