Settlement Period QLD

Learn about the minimum settlement period QLD, the property settlement process, and key legal tips to avoid common delays & mistakes.

What is a property settlement? 

Understanding the settlement process when buying a home can be a bit confusing if you aren’t familiar with how it all works. When you sign a contract of sale to purchase a property, the settlement date refers to the legal date that the ownership of the property passes from the seller to you.

In Queensland, property settlement periods are usually between 30 and 90 days, although it is possible to have a shorter settlement period if both parties can settle earlier, or a longer settlement period if both parties agree.

Minimum Settlement Period in Queensland

In Queensland, the settlement period (the time between signing the contract and finalising the property transfer) is typically negotiated between the buyer and seller. While there is no legislated minimum, standard settlement periods generally range from 30 to 90 days. A 30-day settlement is most common, especially for cash purchases or when buyers have pre-approved financing.​

• 14 to 21 days – Fast settlements in competitive markets

• 30 days – Most typical timeframe in QLD

• 45 to 90+ days – Longer settlements when more time is needed for finance, moving or selling another property

For buyers requiring finance approval, a longer settlement period of 45 to 60 days is often preferred to accommodate lender processing times and any necessary inspections or approvals. In some cases, particularly when both parties are motivated, shorter settlement periods, as brief as 14 or 21 days, can be negotiated, though these are less common and may present logistical challenges.​ Regardless, it is always crucial to carefully follow all the necessary steps to purchase a property and avoid mistakes.

Keep in mind that the settlement period starts from the contract date, not from the date of finance approval or inspection.

How does a property settlement occur?

Taking place on a date agreed between you and the Seller at the time of signing the contract, the settlement day is the day your conveyancer will meet with the seller’s legal representatives to sign the final documents of sale and pay the balance of the purchase price on your behalf. These final documents are then sent to the titles office to register you as the new owner of the property. On the day of settlement, your conveyancer will:

• Check any existing mortgage on the title to the seller is discharged
• Ensure any third party or person who has rights over the property (a caveat) is removed
• Ensure all clauses on the sales contract are fulfilled
• Check the transfer of land and mortgage is registered with the title office in your state

What Happens During the Settlement Period in QLD?

The settlement period allows time for both parties to prepare for the ownership transfer. Here’s what generally happens:

For Buyers:

• Organise building and pest inspections

• Finalise finance with your lender

• Review contract conditions

• Obtain insurance from the contract date

• Conduct a final inspection just before settlement

For Sellers:

• Prepare the property for handover

• Complete required repairs or maintenance

• Discharge any existing mortgage

• Vacate the property by settlement day

Your solicitor or conveyancer will liaise with the bank, real estate agent, and the other party’s legal representative to make sure everything runs smoothly.

Can the Settlement Date Be Extended?

Yes, but only if both parties agree in writing. Extensions are often requested when banks experience delays or one side needs more time to complete documentation. If one party does not agree, the standard contract terms and penalty conditions apply.

How to prepare for your property settlement

It is essential to conduct a final inspection before settlement day, typically the day before. The point of this final inspection is to ensure the house is in the same condition it was when you signed the contract.

To avoid any delays with settlement, ensure that all documents requested by your conveyancer and bank are signed and returned to them on time. The most common delay in settlement is the bank’s failure to be ready to settle, which is often caused by paperwork not being lodged in a timely manner.

In most cases, settlement occurs later in the afternoon, which can often make it difficult if you want to move in on the same day. If possible, arrange for your removalist to be available on the day after settlement, or at least 1-2 hours after the settlement time. Your conveyancer will be able to inform you of the scheduled settlement time.

What happens after the settlement?

Once settlement is completed, your solicitor will notify you and the real estate agent. You will then be able to collect the keys and take possession of the property.

If you are purchasing a property in Cairns, get in touch with the team at Cairns Conveyancing Solicitors. Our team of expert conveyancers will guide you through the property buying process.

Frequently Asked Questions

Can either party terminate the contract during the settlement period?
Once a contract becomes unconditional in Queensland, either party is generally bound to complete the transaction. Terminating the contract at this stage without legal grounds may result in significant financial and legal consequences, including forfeiture of the deposit or potential claims for damages. It is imperative to seek legal advice before considering any action that may affect settlement.

What occurs if the scheduled settlement date falls on a weekend or public holiday?
Under Queensland property law, settlement must take place on a business day. If the nominated settlement date coincides with a weekend or public holiday, settlement is typically deferred to the next available business day as stipulated by standard contract terms.

Is my physical presence required on the day of settlement?
No. Parties to a property transaction are not required to attend settlement in person. Your solicitor or conveyancer will act on your behalf and facilitate the process electronically through the PEXA (Property Exchange Australia) platform, in accordance with standard conveyancing practice.

Can the purchaser take possession of the property on the day of settlement?
Generally, yes. Provided that settlement has been effected and the property is vacant as agreed, the purchaser may take possession on the same day. The transfer of keys is usually arranged through the selling agent immediately following confirmation of settlement.

Does the standard settlement period apply to off-the-plan purchases?
No. Off-the-plan contracts typically specify that settlement will occur a set period after the registration of the plan or the issuing of the title. This can result in a significantly longer and less predictable settlement period compared to standard residential transactions.