Who decides the settlement date?
Curious about who decides the settlement date in a property transaction?
January 2025 | By Fall Real Estate | Tags: Sell
In this article
- Find out who decides the settlement date and what affects the date and time.
The settlement date is an agreed-upon day when the ownership of the property is officially transferred from the seller to the buyer. It is determined and negotiated during the sale process based on the preferences and circumstances of both parties.
For more information about the settlement process, read our informative article Understanding the property settlement process in Southern Tasmania. Scroll down further to find out who decides the settlement date.
Disclaimer: The information on this website is not legal or professional advice and is general in nature; therefore, the editorial content or articles on this website are intended as a guide only and do not consider your personal objectives, financial situation or particular needs. For more information, please read our Terms of Use and Privacy Policy.
Initial agreement
Buyer's offer
When a buyer makes an offer on a property, they typically propose a settlement date as part of the offer, which is usually 30, 60, or 90 days after both parties sign the contract. The time frame can vary depending on the buyer's financing and personal needs, such as the amount of time to sell their own home, secure a loan, or prepare for moving.
Seller's consideration
The seller considers the proposed settlement time frame and either agrees to it or negotiates a different date based on their circumstances, such as moving out of the property or coordinating with purchasing a new home.
Negotiation process
Both the buyer and seller may need to be flexible. The buyer might need more time to finalise their loan, or the seller might need time to vacate or settle their own purchase. Your experienced Fall agent will work back and forth to negotiate to ensure the date works for both parties.
Once a date is agreed upon, it is written into the contract of sale. At this point, both parties are legally bound to settle the sale on this date unless further negotiations or unforeseen issues arise.
Factors influencing settlement date
Buyer's financing
The time required for the buyer to secure financing can affect the settlement timeline. Lenders might require a longer period to process the loan, which could delay settlement.
Seller's moving timeline
If the seller is purchasing a new property and needs to move in sooner or perhaps needs time to vacate, this could also influence the proposed settlement period.
Market conditions
In competitive markets, shorter settlement periods might be preferred, while slower markets may allow for longer settlements.
Post-negotiation
Extension requests
If issues arise, either party can request an extension, but this requires the agreement of both sides and is often renegotiated with the help of their conveyancer or solicitor. Reasons for requesting an extension might be delays in financing or pre-settlement inspections.
Overall, the settlement date is a mutually agreed upon date determined through negotiation, taking into account the needs of both the buyer and the seller.
Have all your questions answered
Fall Real Estate agents have a wealth of local knowledge and proven results across Southern Tasmania.
Contact one of our eight offices across Greater Hobart or complete the sales appraisal form or rental property appraisal form to speak with one of our property agents or residential leasing agents and have all your real estate questions answered.
Disclaimer: The information on this website is not legal or professional advice and is general in nature; therefore, the editorial content or articles on this website are intended as a guide only and do not consider your personal objectives, financial situation or particular needs. For more information, please read our Terms of Use and Privacy Policy.
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