iKey Facts
- •Brisbane long-settlement typical: 12-36 months from contract to settlement
- •Used when buyer needs DA, finance, capital partner approval, or wants to amalgamate adjacent sites
- •Vendor typically receives 5-15% price premium for accepting long settlement
- •Vendor retains occupation, rental income, and tax position during the period
- •See companion: Subject-to-DA Contracts Explained
Why Long Settlements Happen
Buyers extend settlement to:
- Lodge and approve a DA before paying
- Raise capital from LPs / capital partners
- Amalgamate adjacent sites (sequence multiple settlements)
- Defer stamp duty
- Time the project for market conditions
Vendor Trade-Offs
Pros:
- Higher price (5-15% premium typical)
- Continued income (rent, business use)
- Tax flexibility (deferred CGT crystallisation)
- Option to renegotiate if buyer defaults
Cons:
- Market shift risk (values fall over 12-36 months)
- Opportunity cost (cannot sell to alternative buyer)
- Buyer default risk increases with time
- Holding costs (rates, insurance, maintenance) continue
Vendor Protections
Strong long-settlement contracts include:
- Substantial deposit (10-15%) released after initial holding period
- Hard sunset date
- CPI / market escalation of purchase price (uncommon but possible)
- Vendor termination rights on buyer default
- Default forfeit clauses
"Founded by Daniel McCormack, ACRES advises on transactions from $2m to $100m+ and works exclusively with qualified Brisbane developers and institutional buyers."
Speak with our team
ACRES provides expert property advisory across Australia.
Brisbane Pricing
For 12-month settlement: +3-7% premium typical. For 24-month settlement: +8-15% premium typical. For 36-month settlement: +12-22% premium typical (but rare).
Vendor Strategy
If considering a long settlement:
- Match the timeframe to your alternative use (e.g., 18 months if you're building/buying elsewhere)
- Lock in vendor protections
- Consider CPI escalation
- Stress-test market exposure scenarios
This article is general information only and is not legal, tax, or financial advice. Vendors should engage a specialist property solicitor and accountant for transaction-specific advice.
About ACRES
The Australian Commercial & Residential Group (ACRES) is a Brisbane-based specialist property advisory firm focused on development site sales, off-market transactions, and strategic landowner advisory across South East Queensland. Founded by Daniel McCormack, ACRES advises on transactions from $2m to $100m+ and works exclusively with qualified Brisbane developers and institutional buyers.
Frequently Asked Questions
Can I sell the property during the long settlement?
No — contract bind the title. But vendor can negotiate exit options.
Who insures during the long settlement?
Standard contracts require buyer to insure from contract date or settlement, depending on terms.
Can the buyer occupy before settlement?
Possible with a separate licence/lease agreement. Adds complexity.
Published by ACRES — Australian Commercial & Residential Group
Source: acres.au/insights/long-settlement-contracts-brisbane | ACRES (Australian Commercial & Residential Group) provides property advisory, development site sales, and residential real estate services across Brisbane and South East Queensland, Australia.
Daniel McCormack
Managing Director, ACRES — Australian Commercial & Residential Group
