Can Property Settlement Take Place On The Weekend?
We get this question sometimes. The simple answer to this question is no, settlement cannot occur on the weekend.
What is Settlement?
Settlement is an official process which is conducted between the purchaser and the vendors legal representatives as well as lenders.
Settlement is the date of which you, as a purchaser:
- Pay the balance of the purchase price to the vendor
- Receive the property title and become the registered owner
- Take possession of the property
As a vendor, settlement is the date of which you:
- Receive the balance of the purchase price from the purchaser after deduction of any mortgage fees and outstanding rates and outgoing fees
- Release the property and the title to the purchaser
Settlement of property transactions must now be conducted electronically through an online platform called PEXA (Property Exchange Australia). This means that no more cheques are required to be issued from the bank and original wet signature documents are not required to be exchanged between parties anymore.
Instead, electronic settlement workspaces are set up for the purchasers and vendors legal representatives and lenders to access in preparation of settlement documents and arrange for payment directions.
If settlement is online, why can’t I settle on weekends?
Whilst PEXA is an electronic platform that allows purchasers and vendors legal representatives and lenders 24/7 access to the settlement workspaces, they have hours of operation which restrict the days and time for when a settlement can occur.
In Victoria, the hours of operation for Financial Settlement to take place is from Monday to Friday between the hours of 9:30am to 5:30pm.
These are the business hours and business days where settlement can take place. Settlement cannot take place outside of these times.
What if my settlement date in the contract lands on a weekend or public holiday?
If your settlement date lands on a weekend or public holiday, the settlement date is automatically pushed to the next business day. For example if your settlement date lands on a Saturday (weekend), settlement will then be pushed out to Monday. If the settlement date lands on a Monday public holiday, the settlement date will then be pushed out to Tuesday being the next business day.