What does settlement delay mean?

A settlement delay occurs when the agreed-upon date for finalising a property purchase is postponed. This can happen due to various reasons, including paperwork issues, or a delay in finance being ready to finalise the transaction.

What happens if PEXA settlement is delayed?

If a PEXA settlement is delayed, it means that the electronic process for transferring funds and property ownership has been postponed. This is usually rescheduled so that settlement can happen at a later date.

What is the penalty interest on a delayed settlement?

Penalty interest on a delayed settlement is a fee that the buyer may be required to pay if they cause a delay. This interest is calculated based on the contract terms, often around 9-12% per annum on the purchase price.

What is the longest settlement period?

Usually, when you buy a house the standard settlement terms are 30 to 60 days. It can sometimes extend up to 120 days or more, depending on the agreement. The longest settlement periods usually apply with off the plan properties, which can have settlement periods of many years.

How long after house settlement do I get paid?

Payment is typically made on the day of settlement. The seller will receive the funds from the buyer's lender or solicitor, usually within a few hours of the settlement being completed.