The Contract You Sign Before You Get the Keys – and Why Settlements Get Delayed

Buying a property is an exciting, busy, and sometimes stressful process, with packing and moving. It’s easy to get swept up and focus on getting your new keys and the move-in date. From a legal perspective, however, outcomes are largely determined at the contract stage, so it’s best to get things right at the start so you can enjoy the excitement closer to settlement.

Once an offer is accepted, the Agreement for Sale and Purchase governs the transaction. It records what is being purchased, the price, the conditions to be satisfied, and the settlement date. As with any property transaction, careful drafting and clear conditions are what protect you.

Common conditions include finance approval, building and LIM reports, title review and insurance. Sometimes the contract is also conditional on the sale of another property. Each condition requires appropriate wording, realistic timeframes, and clear confirmation when they are satisfied or waived. If details are overlooked early, pressure builds as settlement approaches.

Settlement delays rarely stem from one major problem. More often, they arise from processing times with lenders, valuation requirements, or matters identified during due diligence, such as unconsented works, missing compliance documentation, easements, covenants, cross-leases or unit title issues. Where transactions form part of a same-day settlement chain, one delay can impact multiple parties.

The key message is simple: documentation and timing drive outcomes. Involve your lawyer early, understand your conditions, and address finance and due diligence promptly.

Careful preparation ensures that settlement day proceeds as planned, with certainty, not crossed fingers.

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