The lender has not come through in time. Settlement day is fast approaching and the finance that was meant to be in place is not there yet. For buyers across Queensland, this is one of the most stressful moments in a property purchase, and the decisions made in the next few hours can determine whether the contract survives.
The standard Queensland residential contract sets firm rules about what happens when finance is delayed. Both the finance condition and the settlement date operate under strict notice requirements, and missing either can expose a buyer to serious consequences. The time limits in the contract are not suggestions, and "time is of the essence" means exactly that, according to the standard Queensland residential contract.
Our Springfield team helps clients across Greater Springfield and Ipswich with delayed settlement and finance issues in property contracts.
Here is how a delayed finance approval generally affects a Queensland contract, and what the standard contract allows a buyer or seller to do.
Key takeaways
- The standard contract's finance notice must be given by 5pm on the finance date.
- Either party may extend settlement by notice, up to 5 business days.
- Missing a deadline gives the other party a right to terminate the contract.
This article is general information only and is not legal advice. Every situation is different, and you should speak with a solicitor about your own circumstances.
What does Queensland's standard contract say about a delayed finance approval?
The standard Queensland residential contract sets out the finance condition clearly. The contract is conditional on the buyer obtaining approval of a loan for the finance amount from the named financier by the finance date, on terms satisfactory to the buyer, according to the standard Queensland residential contract. The buyer must take all reasonable steps to obtain that approval.
By 5pm on the finance date, the buyer must give the seller one of two notices: either that finance approval has not been obtained and the buyer is terminating the contract, or that the finance condition has been satisfied or waived. If no notice is given by 5pm on the finance date, the seller may then terminate the contract by giving their own notice. That termination right is the seller's only remedy for the buyer's failure to give notice on time, subject to the buyer's continuing right to give written notice of satisfaction, termination or waiver.
Pre-approval, which Moneysmart describes as showing a buyer is eligible to apply for a loan up to a certain amount, is not the same as formal approval. It does not satisfy the finance condition.
What options does a buyer have when finance is running late?
Where a buyer's lender needs more time, the contract itself sets out two ways to deal with the settlement date. Neither automatically extends the finance date, which is a separate deadline.
The two options the standard contract provides are:
- › Extension by notice: either party may, at any time up to 4pm on the settlement date, give written notice extending the settlement date to a new date no later than 5 business days after the original scheduled date. More than one such notice may be given, but the new date can never go beyond that 5 business day limit.
- › Extension by agreement: the parties may also agree in writing to a longer extension of the settlement date. A written communication from a party's solicitor varying the settlement date is treated as given with that party's authority, under the standard Queensland residential contract.
The distinction matters. A unilateral notice under the contract gives a maximum of 5 business days. Anything longer requires the other party's agreement, which they are not obliged to give.
When does missing the finance or settlement deadline become a default?
Paying the balance of the purchase price and settling by the settlement time and date are essential terms of the standard contract. If a buyer fails to settle on time and has not given a valid extension notice or reached an agreement with the seller, the seller may affirm the contract and sue for damages, or terminate it.
Where the seller terminates for the buyer's default, the standard contract allows the seller to resume possession, forfeit the deposit and any interest earned, sue the buyer for damages, and resell the property. On a resale settling within 2 years of termination, the seller may also recover any shortfall in price and the costs of repossession and resale from the buyer.
The buyer must also pay interest on any amount not paid when due, from the due date until paid, at the default interest rate. The rate is either the figure written in the contract or, if none is stated, the Contract Rate published by the Queensland Law Society. As at 6 October 2026, that rate is 10.84% per year, simple interest, according to the Queensland Law Society.
Does a bank or system outage change the position?
Queensland's Property Law Act provides a limited exception where time is of the essence and an electronic settlement cannot happen on the day because computers used by the land registry, the office of the Commissioner of State Revenue, the Reserve Bank of Australia, a financial institution, or an Electronic Lodgment Network operator are inoperative. In that situation the parties are not in breach only for that reason, and the settlement day moves to the next business day with time remaining of the essence.
A separate provision covers what the Property Law Act calls an adverse event, meaning an event that causes serious disruption to a community, such as a cyclone, fire, flood, storm, a public health emergency, or a lawful government direction. Where a party cannot complete settlement because of such an event and takes reasonable steps to address it, that party is not in breach only because it failed to settle at that time. The party must tell the other as soon as practicable, and must then give notice of a new settlement date between 5 and 10 business days after the notice, once the event stops preventing settlement.
A lender's internal delays or processing backlogs are not an outage or adverse event under these provisions. A buyer who cannot settle because their lender is slow does not automatically benefit from them, and a solicitor can advise on how the contract's terms apply to the specific situation.
How does a solicitor help when finance is delayed in Queensland?
When a finance delay emerges, the decisions that follow are time-critical. A solicitor in Queensland can help by assessing whether the finance condition has been properly triggered and what notice, if any, must be given by the deadline. They can also contact the seller's solicitor to discuss an agreed extension of the settlement date where the standard 5 business day unilateral notice is not enough, and communicate any variation of the settlement date in writing so it is treated as given with the client's authority under the contract.
Step 1: Talk to us
Get in touch and we'll explain how the finance condition and settlement deadline generally work and what the next steps look like.
Step 2: Review the contract and the deadline
We review the contract to confirm the finance date, the settlement date and the exact notice requirements, so nothing is missed in the time available.
Step 3: Contact the other side
We write to the seller's solicitor to communicate the position, request an agreed extension where the 5 business day unilateral notice is not sufficient, and confirm any variation in writing.
Step 4: Prepare for settlement
Once the position is clear, we work with the buyer's lender and the other side to prepare the electronic workspace and ensure settlement can proceed on the agreed date.
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What happens when the seller is also waiting on something before settlement?
The standard Queensland residential contract also protects a buyer where the seller's bank or the seller's side of the electronic workspace is the source of the problem. A party is not in default to the extent they are prevented from complying because the other party, or that party's financial institution, has done or not done something in the electronic workspace, according to the standard contract. This means a buyer whose settlement has been held up by the seller's lender's failure to act in the workspace is not automatically in default themselves.
"In Queensland, the contract's settlement deadline is as firm as the finance date. A buyer who misses either without giving the right notice in time can give the seller grounds to terminate, so acting quickly when a lender is delayed is important."
Jade Kickbusch, Principal, Brookwater Legal
What common mistakes do buyers make when finance is running late?
The most common error is assuming that telling the seller's agent verbally about a delay is enough. Under the standard Queensland residential contract, notices must be in writing. An emailed notice given after 5pm on the finance date is treated as given on the next business day, which means it arrives too late if the finance date has already passed.
A second mistake is treating the finance date extension and the settlement date extension as the same thing. They are separate deadlines with separate notice requirements. Extending the settlement date does not change the finance date, and vice versa. Both need to be addressed when a lender's delay affects both.
Frequently Asked Questions
Can a buyer extend the finance date in a Queensland contract?
The standard Queensland residential contract does not provide a unilateral right to extend the finance date. Changing the finance date requires the other party's written agreement, and the contract terms govern what happens if that is not obtained in time.
How far can the settlement date be extended by notice in Queensland?
Either party may extend by written notice to a new date no later than 5 business days after the original settlement date, according to the standard Queensland residential contract. A longer extension requires both parties to agree in writing.
What is the default interest rate in a Queensland property contract?
If the contract does not state a default rate, the Contract Rate published by the Queensland Law Society applies. As at 6 October 2026, the Queensland Law Society sets this at 10.84% per year, simple interest, and the rate changes periodically.
Does a lender's delay count as an adverse event under Queensland law?
Queensland's Property Law Act defines an adverse event as something that causes serious disruption to a community, such as a natural disaster or public health emergency. A lender's internal processing delay does not meet that definition, and the Act's adverse event provisions generally would not apply.
Can a seller terminate a Queensland contract if the buyer's finance is delayed?
Where the buyer does not give the required finance notice by 5pm on the finance date, the standard Queensland residential contract gives the seller the right to terminate by notice. That is generally the seller's only remedy for the failure to give the notice on time.
Do you need a solicitor when finance is delayed and settlement is at risk in Springfield or Ipswich QLD?
When a lender's delay puts settlement at risk, a solicitor can review the contract, advise on the exact notice requirements, contact the other side and help negotiate an agreed extension where the contract's 5 business day notice alone is not enough. Our conveyancing team acts for buyers and sellers across Greater Springfield and Ipswich.
What happens if both parties want to extend settlement in Queensland but cannot agree on a date?
Either party may give a unilateral extension notice under the standard Queensland residential contract, but only up to 5 business days past the original date. Beyond that, extension requires agreement. Where no agreement is reached, the contract's default and termination provisions apply, and a solicitor can advise on the specific position.
Your Next Steps
A finance delay in a Queensland property contract can move quickly from an inconvenience to a default. The notice requirements in the standard contract are strict, and the window for giving them is short. Whether the issue is a lender processing delay, a valuation holding up approval, or uncertainty about how the finance and settlement dates interact, getting advice early gives the best chance of keeping the contract on track. Buyers and sellers across Greater Springfield and Ipswich face this situation regularly, and the outcome often turns on how quickly the right steps are taken.
If you're working through a delayed settlement, the right advice early makes the process simpler. Contact the Brookwater Legal team or call (07) 3437 8555 to talk through where you stand.
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External Resources
Brookwater Legal · This article contains general information only and does not constitute legal advice. It does not take into account your individual circumstances. You should obtain legal advice about your own situation before acting on anything in this article. Liability limited by a scheme approved under Professional Standards Legislation.
