Quick answer
The commercial property settlement period is whatever your contract says. There is no single legal default. The standard NSW contract commonly runs 42 days from exchange, and other states' contracts commonly set 30 to 90 days. Sellers are paid on settlement day once the buyer's funds and the title transfer clear, so the settlement date is the earliest your sale proceeds can repay anything.
Key points
- The contract's settlement date is the only one that counts; the same sale can run 30 days or 90
- The ATO clearance certificate can take up to 28 days, so it sits on the critical path
- Your lender's discharge, the GST position and tenancy paperwork all need to be ready before the final week
- Proceeds arrive on settlement day only if everything closes inside the cut-off; a late finish can mean the next business day
- Size any bridge to the slow case, not the contract date
You’ve exchanged contracts on your commercial property. The price is agreed, the deposit is in trust, and every plan you’ve made since depends on one date: settlement. Between exchange and that date there is a span, and it has load on it.
This guide lays that span out the way an engineer would: how the date gets set, what has to be signed off in between, and where the money actually lands, so you can plan for the slow case and not just the contract date.
Who sets the commercial property settlement period?
The contract does. Unlike some residential sales, there’s no statutory settlement period for a commercial sale. The date sits in the contract’s particulars, and the buyer and seller negotiate it.
What you’ll see in practice:
- NSW: the standard contract for sale commonly provides for completion 42 days after the date of the contract, unless the parties write in something different.
- Elsewhere: commercial contracts commonly set 30, 60 or 90 days, and it’s normal to see longer where the buyer needs development approvals, a lease-up or a long finance process.
- Special conditions: many commercial deals tie settlement to an event (a finance approval, a subdivision, a tenant’s lease starting), which makes the real date less certain than the printed one.
These are common patterns, not rules, so read the particulars of your own contract and ask your lawyer to confirm what the date is and whether any condition can move it. If your buyer wants a very long period, that’s a separate decision with its own risks, covered in our guide to releasing the deposit early.
What has to happen between exchange and settlement?
Think of it as a critical path. Some tasks are quick; two or three are slow and they set your real timeline.
| Task | Who | Typical lead time |
|---|---|---|
| ATO clearance certificate | You (or your agent or lawyer) | Up to 28 days |
| Discharge of your existing mortgage | Your lender | Request early; processing varies by lender |
| GST position confirmed (going concern, margin scheme or fully taxable) | You and your accountant | Days, if the facts are clear |
| Tenancy schedule, leases, bonds and estoppel details | You | Days to weeks |
| Title searches and requisitions | Both lawyers | One to three weeks |
| Buyer’s finance unconditional and funds ready | Buyer | Often the last thing to land |
| Final adjustments (rates, rent, outgoings) | Both lawyers | The final week |
The clearance certificate is the one owners miss. The ATO says it can take up to 28 days to issue and recommends applying at least 28 days before settlement, as set out in its page on Australian residents and clearance certificates. Without one, the buyer withholds 15% of the price. We cover that trap in the clearance certificate guide.
The GST line matters because it changes the number you walk away with. The ATO’s page on selling commercial premises explains when a sale is taxable and when it can be GST-free; have your accountant confirm the position before exchange, not in the last week.
How does settlement day work?
Most commercial settlements are done electronically. The two lawyers or conveyancers prepare the transfer, discharge and funds in an online workspace, and on the day:
- Both sides sign off the final figures, including the adjustments.
- The buyer’s funds are committed, usually from their lender.
- The transfer and any discharge of mortgage are lodged with the land registry.
- Funds move: your lender is paid out first, then any balance is directed to your account.
Banks and settlement platforms apply cut-off times, and they vary. A settlement that is ready by mid-afternoon usually finishes the same day; one that starts late, or hits a missing signature or a funds shortfall, can roll to the next business day. If you need the money on a particular day, ask your lawyer to book an earlier time and confirm the cut-off with the bank.
Western Australia is the exception to remember. Landgate has required electronic lodgement as the standard process for transactions entered into from 1 December 2018, and a second network operator has been approved alongside PEXA, so the settlement workspace your conveyancer uses may differ. Paper lodgement is only accepted where the document can’t be lodged electronically and a request form is made; Landgate sets that out in its electronic conveyancing guide. Ask early which platform applies.
What do you actually receive?
The sale price isn’t the cheque. A settlement statement walks the number down:
- Sale price (plus GST, if the sale is taxable)
- Less your mortgage payout and any break or discharge costs
- Less agent’s commission and legal costs
- Plus or minus adjustments for rates, rent and outgoings
- Less any amount you’ve asked to hold back for a tax liability
Only the last line is yours to spend. If a bridge needs repaying from the proceeds, that net figure, not the sale price, is the exit. Put it in the bridging calculator to see peak debt and end debt against the date.
A worked example: the slow case
A business sells its depot for $2.4m with settlement 60 days after exchange, and has exchanged on a new site at $2.9m to settle three weeks earlier than the sale. The owner plans a bridge to cover the overlap. (Illustrative scenario.)
| Contract date | Slow case | |
|---|---|---|
| Sale settles | Day 60 | Day 74 |
| Purchase settles | Day 39 | Day 39 |
| Days of bridge | 21 | 35 |
| Net sale proceeds (after $1.1m payout and costs of $90k) | $1.21m | $1.21m |
| Peak bridge debt | $1.69m | $1.69m |
The numbers don’t change, but the span goes from three weeks to five. A lender or the owner who sized the loan to day 60 now has a bridge that expires two weeks before the money does. If the clearance certificate was lodged late, the buyer’s finance asked for a further valuation, or the settlement was booked for late in the day, the slip is real.
Plan the span to the slow case, and confirm that the exit doesn’t change because of a delay. Our page on exit by sale shows what a lender looks for in a sale exit, and open versus closed bridging explains why a flexible term can matter when the exit date is uncertain.
If your sale is exchanged and you’re lining up the next commitment, it can help to talk through the span with someone who does this every day.
What if the buyer doesn’t settle on time?
First, check what the contract allows. In most states, a buyer who doesn’t complete on the date is in default, and the seller’s usual step is a notice to complete that sets a final, reasonable period (commonly in the order of 14 days, depending on the contract and state). Your lawyer will advise on timing, interest on the unpaid price, and whether to terminate. Do not serve anything yourself.
While that runs, your own obligations don’t stop. Our page on settlement delayed covers how a short-term loan works when the buyer is late and the money is already committed.
How do you shorten the settlement period?
You can’t force a buyer to settle early, but you can make sure you’re never the one holding it up:
- Apply for the clearance certificate the day contracts are exchanged, or before.
- Ask your lender for discharge details in the first week.
- Get the GST position confirmed in writing before exchange.
- Assemble the lease, bond and outgoings paperwork in one folder.
- Ask your lawyer to book the settlement slot and cut-off early.
- Keep contact with the buyer’s lawyer about their finance timeline.
Which mistakes cost vendors the most time?
Three come up again and again, and each adds days to a span you’ve already committed against:
- Treating the printed date as certain. If the contract has a finance or approval condition, the real date moves with it. Ask your lawyer which conditions are still open and when each lapses.
- Leaving the payout figure to the last week. Your lender’s discharge process has its own steps, and a stale figure means a recalculation on the day.
- Committing all of the proceeds. Hold some headroom for adjustments, a late-day finish or a short delay. A margin of a couple of weeks on the span is cheap compared with a missed obligation.
Settling and moving on
Waiting for a settlement is stressful when the money is already spoken for. If you’ve exchanged on a sale and need to fund the next move before the proceeds arrive, we’d like to look at the span with you.
Enquiring takes about 60 seconds and doesn’t touch your credit file. We don’t send your details to a pile of lenders; a real person who works on bridges every day reads your situation and calls you. Please fill in the form accurately, with the real settlement dates, payout figure and what the proceeds are committed to, so we can match the right structure first time.
Frequently asked questions
How long does commercial property settlement take?
It depends on the contract. Commercial contracts commonly set settlement somewhere between 30 and 90 days from exchange, and the NSW standard form commonly defaults to 42 days. Buyers who need finance approval, a vacant possession or a long due diligence often negotiate longer.
Can the settlement date be changed after exchange?
Only by agreement, or where the contract provides for it. Both parties sign a variation or the lawyers exchange letters. A buyer who simply runs late is in default, and the seller's remedy is usually a notice to complete, which your lawyer should serve.
Does a commercial property sale settle on PEXA?
In most states, yes, where the transaction and title are lodged electronically. Western Australia's Landgate has required electronic lodgement as the standard process for transactions from 1 December 2018, with Sympli also approved there alongside PEXA. Check with your conveyancer which platform your sale uses.
When do I actually get the money on settlement day?
Once the title transfer is lodged and the buyer's funds are released, the proceeds are paid to your lender first to discharge the loan, then any balance goes to you or your account. Banks and platforms set cut-off times, so a settlement that closes late in the day can see funds the next business day.
Do I need an ATO clearance certificate to settle?
Yes, to avoid the buyer withholding 15% of the price. The ATO says an application can take up to 28 days and recommends lodging at least 28 days before settlement.
What if my settlement slips and I've committed the proceeds?
Talk to your lawyer first about what the contract allows. If the money is already committed to a purchase or a bridge, a short-term loan can cover the gap, with the sale settlement as the exit. The lender will want the contract, the settlement date and evidence the buyer can complete.