When you buy or sell property in Victoria, the Contract of Sale will usually contain important dates and deadlines.
These may include a date for:
- Paying the deposit
- Obtaining finance approval
- Completing a building and pest inspection
- Giving notice under a special condition
- Providing required documents
- Completing settlement
But what happens if you cannot meet one of these deadlines?
This is a common concern for buyers and sellers, particularly when finance takes longer than expected, a building and pest inspection cannot be completed on time, or settlement arrangements change.
The important thing to remember is that a contractual deadline should not simply be ignored.
What happens next depends on the wording of the Contract of Sale, the relevant special condition and the circumstances of the transaction.
What Is a Contract Due Date?
A contract due date is a date by which a party is required to do something under the Contract of Sale.
For example, a contract may require a buyer to:
- Obtain finance by a particular date
- Complete a building and pest inspection within a specified period
- Provide notice by a certain date
- Pay the deposit by the required date
- Complete settlement on the agreed settlement date
The exact requirements depend on the contract.
This is why it is important to understand the conditions and deadlines before signing.
What If I Cannot Meet the Finance Date?
Finance is one of the most common reasons a buyer may have difficulty meeting a contractual deadline.
For example, your lender may still be:
- Finalising your loan approval
- Completing a valuation
- Preparing loan documents
- Confirming funding
- Resolving an issue with your application
If your finance condition has a specific deadline, you should not assume that the date will automatically be extended.
Contact your conveyancer and lender as soon as you know there may be a problem.
Depending on the contract, it may be possible to request an extension or take another step before the deadline expires.
For more information about finance conditions, see our article on Subject to Finance.
What If I Cannot Complete the Building and Pest Inspection?
A buyer may sometimes have difficulty arranging a building and pest inspection within the time allowed under the contract.
For example:
- The inspector is unavailable
- Access to the property is delayed
- The inspection needs to be rescheduled
- A report takes longer than expected
- Further investigation is required
If the building and pest condition has a specific deadline, tell your conveyancer as soon as possible.
Do not wait until after the deadline has expired before raising the issue.
You can also read our article about Subject to Building & Pest for more information.
What If the Building and Pest Report Finds a Problem?
Finding a problem does not automatically give a buyer an unlimited right to cancel or renegotiate the contract.
Your rights depend on the wording of the particular condition.
For example, the contract may specify:
- What type of defect is relevant
- Who must prepare the report
- When the report must be obtained
- What notice must be given
- What happens if a problem is identified
This is one reason why reviewing the contract before signing is so important.
What If I Cannot Meet the Settlement Date?
Settlement is another important contractual deadline.
If you know that you may not be ready to settle, contact your conveyancer immediately.
Possible reasons include:
- Finance is not ready
- Your lender has not provided funds
- Required documents are outstanding
- A previous property sale has not settled
- Another transaction in the chain has been delayed
- There is an issue with the title
- There is a problem with settlement figures
A delay in settlement can have financial and contractual consequences.
For more information, see our article What Happens If Settlement Is Delayed in Victoria?
Can the Contract Due Date Be Extended?
Sometimes the parties may agree to extend a contractual deadline.
However, an extension should not be assumed.
The other party may not be required to agree, depending on the circumstances and the contract.
If an extension is agreed, make sure the arrangement is properly documented.
Do not rely solely on a verbal conversation with the agent or the other party.
What If the Other Party Agrees Verbally?
Be careful.
A conversation with the selling agent, buyer or seller does not necessarily mean that the contract has been formally varied.
If a contractual date is important, speak with your conveyancer about documenting the agreement properly.
This can help avoid a dispute later about what was actually agreed.
What If I Miss the Deadline?
Missing a contractual deadline can have different consequences depending on the particular condition.
For example, the contract may provide that:
- A right expires
- Notice must be given by a particular time
- A condition is deemed satisfied
- The other party obtains certain rights
- A party may be entitled to take further action
There is no single rule that applies to every contract.
This is why you should obtain advice as soon as you realise you may miss a deadline.
What If I Am Only One Day Late?
Even a short delay can matter if the contract contains a strict deadline.
Do not assume that being one day late automatically makes no difference.
The effect depends on the wording of the contract and the circumstances.
If you have missed a deadline, contact your conveyancer promptly rather than assuming the problem will resolve itself.
Can I Cancel the Contract If I Cannot Meet the Date?
Not necessarily.
A buyer or seller should not assume that missing a deadline automatically gives them the right to cancel the Contract of Sale.
Whether a contract can be terminated depends on the relevant contractual provisions and the circumstances.
Before taking any action, speak with your conveyancer or solicitor.
What If the Seller Is Responsible for the Delay?
Buyers can also be affected when the seller cannot meet a contractual obligation.
For example, the seller may have:
- Outstanding documents
- An issue with the title
- A mortgage that has not been discharged
- A problem with vacant possession
- Another matter preventing settlement
If the seller cannot meet an obligation, the buyer should contact their conveyancer to understand their rights and the appropriate next steps.
What If the Buyer Is Responsible for the Delay?
If the buyer cannot meet a contractual deadline, the seller may have rights under the Contract of Sale.
For example, a delay in settlement may potentially result in:
- Default interest
- Additional costs
- A request for compensation
- Other contractual consequences
The exact position depends on the contract and the circumstances.
What If I Need More Time?
If you need more time to meet a contractual deadline, raise the issue as early as possible.
Your conveyancer may be able to:
- Review the relevant contract condition
- Explain the deadline
- Contact the other party’s conveyancer or solicitor
- Request an extension where appropriate
- Document any agreed changes
- Explain the potential consequences if the deadline cannot be met
The earlier the issue is identified, the more opportunity there may be to resolve it.
Why You Should Not Wait Until the Deadline
Waiting until the last minute can make a contractual problem much harder to resolve.
For example, if your finance approval is delayed, telling your conveyancer several days before the deadline gives everyone more time to consider the options.
Similarly, if a building and pest inspection cannot be completed on time, early communication may provide an opportunity to address the issue before the contractual deadline passes.
Common Contract Deadlines Buyers Should Watch
Before signing a contract, buyers should pay attention to:
Finance
Check the date by which finance approval or notice must be provided.
Building and Pest
Understand exactly when the inspection must be completed and what the condition requires.
Deposit
Check when the deposit must be paid and where it needs to be paid.
Settlement
Make sure you understand the agreed settlement date.
Special Conditions
Read any additional conditions carefully because they may contain their own deadlines.
Common Mistakes to Avoid
Assuming Every Deadline Can Be Extended
An extension may require agreement from the other party.
Waiting Until the Last Day
Raise potential problems as soon as you become aware of them.
Relying on a Verbal Agreement
Important contractual changes should be properly documented.
Assuming Missing a Deadline Automatically Cancels the Contract
The consequences depend on the contract.
Ignoring Emails From Your Conveyancer
Some deadlines are time-sensitive. Responding promptly can help prevent avoidable problems.
Signing Without Understanding the Conditions
If you do not understand a special condition, obtain advice before signing.
Frequently Asked Questions
What happens if I cannot meet a contract deadline?
The consequences depend on the particular condition and the wording of the Contract of Sale. Contact your conveyancer as soon as possible.
Can I ask for an extension?
You can request an extension, but whether it can be granted depends on the contract and whether the other party agrees where agreement is required.
What if my finance approval is late?
Contact your lender and conveyancer immediately. Your conveyancer can review the finance condition and explain your options.
What if my building and pest inspection is delayed?
Tell your conveyancer before the contractual deadline if possible. The relevant condition will determine what options may be available.
What if I cannot settle on the settlement date?
Contact your conveyancer immediately. Settlement delays can have contractual and financial consequences.
Can I cancel the contract because I missed a deadline?
Not necessarily. Missing a deadline does not automatically give a party the right to terminate the contract.
Does a verbal extension change the contract?
Do not assume it does. Important contractual variations should be properly documented.
What should I do if I realise I will miss a deadline tomorrow?
Contact your conveyancer immediately rather than waiting until the deadline has passed.
How Prox Conveyancing Can Help
At Prox Conveyancing, we understand that property contracts contain important dates and conditions that buyers and sellers need to keep track of.
If you are concerned that you may not be able to meet a contractual deadline, contact us as soon as possible.
We can review the relevant contract condition, explain the conveyancing implications and communicate with the other party’s conveyancer or solicitor where appropriate.
The earlier you raise a potential problem, the more opportunity there may be to find a practical solution.
About the Author
Meet Sally
Sally Kwok is a Licensed Conveyancer and the Director of Prox Conveyancing. With more than 16 years of experience in the conveyancing industry, she is committed to helping buyers and sellers navigate Victorian property transactions with confidence. Sally is passionate about providing clear communication, practical guidance and personalised service throughout every stage of the conveyancing process.
👉 Learn more about Sally on our About page.
About Prox Conveyancing
Prox Conveyancing is a Victorian conveyancing practice providing professional conveyancing services for residential property transactions across Victoria. We assist buyers, sellers, investors and families with a wide range of conveyancing matters, delivering personalised service, transparent communication and professional support from contract through to settlement.
👉 Learn more about Prox Conveyancing on our About page.
This article provides general information only and is not legal advice. Every property transaction is unique, and the information above may not apply to your particular circumstances. If you require advice about your specific situation, please contact a qualified legal professional or licensed conveyancer.