What is the settlement period on a property sale and can it be negotiated?
Within the Contract of Sale, a settlement date is specified. This settlement date refers to the day ownership passes from the seller to purchaser and the balance of the sale price is paid. Property settlement is a legal process conducted by both parties’ legal representatives.
A settlement period is often 30, 60 or 90 days allowing time for both the vendor and purchaser to get organised for the settlement of the property. However, they are not restricted to these timeframes.
The settlement date is often negotiated between the vendor and purchaser to ensure the date suits both parties and their representatives. Often this will need to coincide with the settlement of another property or other factors are taken into consideration.
When in a multiple offer situation, an offer can be looked at favourably if the settlement date matches that requested by the seller as this lessens the possible burden of re-financing or bridging loans on the vendor.
When your agent has received confirmation from the seller’s legal representative that settlement has taken place, the keys can then be given to the new owner!