Can You Change or Extend a Settlement Date in WA?

Settlement plans can shift. A finance approval might take longer than expected. A building inspection might raise issues that need time to resolve. Or you might be selling and buying at the same time, and one date has changed.

Many buyers and sellers in Western Australia find themselves needing to change or extend their settlement date after the contract is signed. The good news is that this is possible in most cases. The key is acting early and getting the variation documented in writing before the original date arrives.

This article explains how the process works, what your settlement agent can help with, and when you should speak to a solicitor.

Can Settlement Dates Be Changed in Western Australia?

Yes. Settlement dates in Western Australia can be changed if both the buyer and seller agree in writing before the original settlement date lapses.

A written variation to the Offer and Acceptance contract is required to formalise a settlement date extension in Western Australia. Verbal agreement is not sufficient.

If both parties agree, there is generally no financial penalty for extending a settlement date, provided the extension is documented before the original date.

How a Settlement Date Change Works: Step by Step

Here is what typically happens when you need to change your settlement date in Western Australia:

1. One party identifies the need for a change. This is usually the buyer, but the seller can also initiate it. Common reasons include finance delays, building inspection issues, simultaneous settlement complications, or a change in personal circumstances.

2. The settlement agent prepares a variation document. Your settlement agent drafts a written variation to the Offer and Acceptance contract, stating the new proposed settlement date.

3. Both parties sign the variation. The buyer and seller both need to sign the amendment before the original settlement date. Their respective settlement agents or real estate agents coordinate this.

4. Lenders are notified, and your finance approval checked. Your settlement agent contacts all lenders involved to confirm the updated date. This matters if finance has already been formally approved and settlement instructions have been issued.

As a buyer, you should also check with your mortgage broker or lender directly. Formal finance approvals are typically issued with an expiry date tied to the original settlement date. If the new date falls outside that approval window, your lender may need to extend or reissue the approval. Your settlement agent cannot arrange this on your behalf. It is a separate step between you and your lender.

5. Settlement proceeds on the new date. Once the variation is signed and lenders are aligned, settlement proceeds as usual on the new agreed date.

Acting early makes the process straightforward. The later you leave it, the more disruption it can cause for everyone involved.

For context on what causes unplanned delays, read our article on the top causes of settlement delays in Perth.

Settlement Date Extension Checklist

Before you request a settlement date extension in Western Australia, work through these steps:

1. Contact your settlement agent first. They will prepare the written variation and coordinate with all parties. The earlier you call, the more options you have.
2. Check your finance approval expiry. If you are a buyer with formal finance approved, confirm with your mortgage broker or lender that the approval will still be valid on the new date. If not, ask them to extend it before the variation is signed.
3. Do not rely on a verbal or email agreement. A valid settlement date extension requires a signed contract variation. An email exchange or a phone agreement between agents is not sufficient.
4. Involve the real estate agent. They can help reach the other party quickly and facilitate agreement, especially if communication has been slow.
5. Keep a copy of the signed variation. Once executed, make sure you have a copy. This is your confirmation of the new date and your protection if a dispute arises later.

What Happens If One Party Refuses to Extend?

If one party wants to extend the settlement date but the other does not agree, the situation becomes a contract matter.

Your settlement agent can prepare extension documentation and contact the other party. However, if the other party refuses, your settlement agent cannot compel them to agree or advise on your legal options. That falls outside the scope of settlement agency.

If the other party will not agree to an extension, speak with a solicitor. A solicitor can review the contract terms, advise on your options, and act on your behalf if the situation cannot be resolved.

The real estate agent handling the transaction may also be a useful first point of contact when trying to reach an agreement with the other party.

If one party refuses to agree to a settlement extension, the contract may contain penalty interest provisions. A solicitor should advise on whether these apply in your specific circumstances.

When Penalty Interest Applies on a Missed Settlement Date

If settlement does not occur on the agreed date and no written extension has been signed beforehand, penalty interest provisions in your contract are likely to apply.

Most residential property contracts in Western Australia incorporate the Joint Form of General Conditions for the Sale of Land (JFGC), which is the standard legal document prepared by the Law Society of WA and REIWA. Here is what the standard JFGC sets out:

Grace period	3 business days after the agreed settlement date
Penalty interest rate	9% per annum
Calculated on	Outstanding purchase price balance
Applies from	The original settlement date
Calculated	Daily, including weekends and public holidays
Who can be liable	The party who caused the delay

 

If settlement occurs within the three-business-day grace period, neither party can claim penalty interest. Beyond that window, the rate above applies.

Whether penalty interest applies in your specific situation, which party is responsible, and whether any special conditions in your contract override the standard JFGC terms are legal questions. Speak with a solicitor who can review your contract and advise you.

Your settlement agent cannot advise on whether penalty interest provisions apply in your circumstances.

In practice, if both parties agree to an extension and the variation is signed before the original settlement date, penalty interest can generally be avoided altogether.

For guidance on what to do if settlement is already running late, see our article on what to do if settlement is delayed in WA.

How Your Settlement Agent Handles a Date Extension

A settlement agent can prepare extension documentation and notify lenders, but cannot provide legal advice if a party disputes the extension.

If you need to extend your settlement date in Western Australia, your settlement agent is your first call.

At Strategic Settlements, we prepare the written variation to the Offer and Acceptance contract and coordinate signatures from all parties. We notify lenders of the updated date and adjust the PEXA workspace (the electronic platform used for property settlements in Western Australia) to reflect the change.

We keep communication clear between the real estate agent, the other party’s settlement agent, and all lenders involved throughout the extension process. For more on how property title registration works in Western Australia, see Landgate.

What we cannot do is provide legal advice if the other party disputes the extension, or advise on your rights under the contract. For those questions, a solicitor is the right professional.

If you know a date change is coming, contact us as early as possible. An extension handled early is routine. Left until the last minute, it can become stressful for everyone

Frequently Asked Questions

Can I extend my settlement date after signing the contract?

Yes, you can extend your settlement date after signing, as long as both the buyer and seller agree to the change in writing. The variation must be signed before the original settlement date lapses. Your settlement agent can prepare the documentation and coordinate with lenders.

How long can you extend a settlement date in Western Australia?

There is no fixed maximum extension period, provided both parties agree. Extensions are typically short, ranging from a few days to a few weeks. Any extension must be documented in a signed written variation to the Offer and Acceptance contract.

What if I need to postpone my settlement date because of a finance delay?

Finance delays are one of the most common reasons buyers need to postpone a settlement date in Western Australia. Contact your settlement agent as soon as you know there will be a delay. The earlier both parties are informed, the easier it is to agree on a new date. If your lender has already issued settlement instructions, your settlement agent will notify them of the date change.

Does changing a settlement date cost extra?

This depends on your settlement agent’s fee structure. Contact us directly and we can advise on any additional administration involved when you raise the extension request.

What is penalty interest on a settlement date?

Under the standard Joint Form of General Conditions used in most WA residential property contracts, penalty interest applies if settlement is delayed by more than three business days past the agreed date. The standard rate is 9% per annum on the outstanding purchase price balance, calculated daily from the original settlement date. Either party can be liable, depending on who caused the delay. Whether it applies in your specific situation, and whether any special conditions in your contract vary these terms, is a legal question. A solicitor can review your contract and advise you directly.

Need to Change Your Settlement Date?

Contact our team and we will handle the documentation with all parties. Reach us at Strategic Settlements.

 

The information in this article is general in nature and does not constitute legal, tax, or financial advice. Strategic Settlements is a licensed settlement agent and cannot provide legal advice. Individual circumstances vary. We recommend consulting a qualified professional, including a solicitor, tax adviser, or the WA Office of State Revenue, before making property decisions.