KEY TAKEAWAYS: Timing is critical – If one settlement is delayed, the entire chain can be affected. Early preparation reduce risk. Sellers buying again carry the most risk – If your sale doesn’t complete, your purchase may fail, potentially exposing you to penalty interest or breach of contract. Preparation prevents problems – Confirm finance approval, lodge discharge authorities early, ensure PEXA readiness, and have a backup plan (like bridging finance or temporary accommodation). What Buyers and Sellers Need to Know If you’re selling and buying at the same time in NSW, you might be planning a simultaneous settlement. It’s common. It’s doable. But it needs careful planning. Here’s a simple guide to help you understand the risks and how to protect yourself. What is Simultaneous Settlement? A simultaneous settlement occurs when a seller uses the proceeds from selling their property to complete the purchase of another property on the same day. Most NSW settlements now occur electronically through PEXA, and funds can move quickly, but timing is everything. If You’re the Seller (And Also Buying Another Property) This is where most of the risk sits. You are relying on: Your buyer settling on time Your bank releasing your mortgage Those funds being available immediately for your purchase If your sale is delayed, your purchase will also be delayed. What Could Go Wrong? The “Chain Reaction” Problem If your buyer is also selling, and their buyer has an issue, the delay flows through everyone in the chain. Bank or other Delays Even small issues can delay or stop settlement: Issues with final inspection Loan documents not verified Discharge authority delays Delays if agent is required to release the deposit Delays if shortfall amounts are not cleared in time Risk of Default If your sale doesn’t settle and causes your purchase not to settle on scheduled: You may be in breach of contract Penalty interest can apply You could receive a Notice to Complete In serious cases, your deposit could be at risk How to Protect Yourself Here are some practical tips: ✔ Avoid Friday afternoons or end-of-month settlements Banks are often overloaded. ✔ Confirm readiness early Your conveyancer and bank(s) should confirm both matters are “ready for settlement” as soon as possible and at least a day prior to settlement. ✔ Submit your discharge authority early Banks can take weeks to process this. ✔ Have a backup plan Bridging finance Short-term accommodation Temporary occupancy agreement Rent back agreement with your purchaser Early access agreement with the vendor of the property you are purchasing How NSW Law Handles Settlement Delays Most residential contracts in NSW allow: Either party to issue a formal Notice to Complete if settlement doesn’t occur which gives you an additional period (often 14 days) in which to settle Penalties and interest can apply immediately if you are the purchaser Termination rights if default continues Financing Considerations (Very Important) If you are selling and buying: Ensure your loan documents are fully signed well before settlement Ensure your discharge documents are completed and submitted well before settlement If using bridging finance, secure approval as soon as possible Best Practice Tips for Smooth Simultaneous Settlements Experienced conveyancers will: Confirm all parties are financially ready Check PEXA workspaces early Confirm bank payout figures in advance Confirm bank available figures in advance Communicate clearly across the chain Good communication is what makes these settlements succeed. The Bottom Line Simultaneous settlements in NSW are common…. and usually successful. But: Sellers who are buying again carry the highest risk Purchasers may experience delays Early preparation is everything Planning to sell and buy at the same time? Our NSW conveyancing team can help you structure your contracts, manage risk, and ensure your settlement is properly coordinated. Speak to us early to avoid unnecessary stress and financial exposure. 📞 Get in touch with Coutts today to ensure your Simultaneous Settlement is handled smoothly. Schedule an Appointment Now ABOUT KAY VITOGIANNIS: Kay joined the Coutts team in May 2021 working as a Licensed Conveyancer within our Property & Conveyancing team, based in our Narellan office. Kay has over 20 years of experience in the Legal industry. She began her journey in CBD Conveyancing firms as a secretary and attained her Advanced Diploma in Conveyancing in December 2010. For further information please don’t hesitate to contact: Kay Vitogiannis Licensed Conveyancer info@couttslegal.com.au 1300 268 887 Contact Coutts today. This blog is merely general and non specific information on the subject matter and is not and should not be considered or relied on as legal advice. Coutts is not responsible for any cost, expense, loss or liability whatsoever in relation to this blog, including all or any reliance on this blog or use or application of this blog by you. Contact Us