Buying or selling property in NSW over the Christmas Holiday Period | The Complete Buyers’ Guide

The summer season in New South Wales is often an ideal time to buy or sell property, with many Australians looking to upsize or downsize depending on their stage of life. Whilst there are many reasons to do so over the summer period, there may also be some additional challenges for those looking to buy or sell around the Christmas Holiday Period – which this year, spans from Monday, 23 December 2024 right through to Friday, 3 January 2025.

During this period, it can be more difficult to actively progress a sale or purchaser transaction because each of the parties that are key to a transaction (being lawyers/conveyancers, banks/lenders and real estate agents) will tend to either be closed or operating on skeleton staff.

For buyers and sellers thinking of buying or selling during or around this period, there a few things that you should factor into your decision-making process.

1. Most real estate agents close over the Holiday Period and so, the general trend is that very few properties are actively on the market (i.e., available for inspection). This tends to result in the market going through a two-week lull over the Holiday Period and so, it can be difficult to inspect a property (if you are looking to buy) or have open homes (if you are looking to sell).
2. Most banks are operating on skeleton staff and so, this can mean that processing times (whether for new loans or discharges) can take significantly longer. For example, we are aware of some banks deferring new loan applications that are submitted during the holiday period until all staff return to the office. You should speak with your bank or mortgage broker about how this might impact you.
3. Most law firms and conveyancers are closed during the Holiday Period and so, the wheels do tend to grind to a halt during this period.

Key factors to consider when buying or selling over Christmas

For buyers and sellers thinking of buying or selling during or around this period, there a few things that you should factor into your decision-making process.

1. Most real estate agents close over the Holiday Period and so, the general trend is that very few properties are actively on the market (i.e., available for inspection). This tends to result in the market going through a two-week lull over the Holiday Period and so, it can be difficult to inspect a property (if you are looking to buy) or have open homes (if you are looking to sell).
2. Most banks are operating on skeleton staff and so, this can mean that processing times (whether for new loans or discharges) can take significantly longer. For example, we are aware of some banks deferring new loan applications that are submitted during the holiday period until all staff return to the office. You should speak with your bank or mortgage broker about how this might impact you.
3. Most law firms and conveyancers are closed during the Holiday Period and so, the wheels do tend to grind to a halt during this period.

Due to each of the above factors, we generally find that very few transactions will settle during the Holiday Period. This will generally result in most buyers/sellers rushing to settle their transactions on or before Friday, 20 December 2024. If this date is missed, settlement will often need to be pushed back until after the Holiday Period – particularly if the Contract for Sale contains a Holiday Period Shut Down Clause (which most do these days).

For context a Holiday Period Shut Down Clause will broadly provide that if settlement falls during the Holiday Period, then settlement is automatically extended to Monday, 4 January 2025. As an example, if a buyer exchanges contracts on 18 November 2024 within a standard 42-day settlement period, settlement would ordinarily be due on 30 December 2024. However, because of the Holiday Period Shut Down Clause (assuming one is included in the relevant Contract for Sale), settlement would automatically be pushed back to Monday, 6 January 2025 (without penalty to either party).

Completion/ Settlement dates

Based on the above example, timing of settlement is a key consideration and so, we regularly advise our clients to consider this when making or accepting offers for the purchase/sale of property in and around the Holiday Period.

Settlement delay rolls into Holiday Period

Another issue to be aware of is where a settlement delay rolls into the Holiday Period.

For example, if settlement is due to occur on Friday, 20 December 2024 and the settlement does not proceed because the buyer was not ready, this would generally entitle the seller to charge the buyer penalty interest from that day until the transaction actually settles (most Contracts for Sale include this clause).

Whilst the penalty interest incurred if settlement is delayed by one day is unlikely to be significant, this can very easily blow out where the settlement delay rolls into the Holiday Period – particularly, if there is a Holiday Period Shut Down Clause.

In this example, if settlement doesn’t go ahead on 20 December 2024, it would then be pushed to 4 January 2025 pursuant to the Holiday Period Shut Down Clause. This 17-day settlement day would result in a buyer being charged over $4,500 in penalty interest (assuming a purchase price of $1 million and a standard interest rate of 10% – which is set out in most Contracts for Sale).

Cooling off periods

In New South Wales, buyers are entitled to a 5-business day cooling off period, starting on the day contracts are exchanged. If that day isn’t a business day, it starts on the next business day.

A Holiday Period Shut Down Clause does not apply to a cooling off period. This means that if you sign a Contract for Sale between Christmas and New Year, the cooling-off period will still apply on days that are not public holidays.

If you are looking at signing a Contract for Sale to purchase a property in and around the Holiday Period, you should keep this in mind because it is likely that the cooling-off period will expire during the time that most law firms and real estate agencies are closed.

If you anticipate needing to sign a Contract for Sale during the Holiday Period or terminate a Contract for Sale during the cooling-off period and this period ends during the Holiday Period, reach out to us as our office is open throughout the Holiday Period to help you!

What should you do if you intend to buy or sell during holiday season?

For Buyers:

1. Discuss settlement expectations: Engage in a conversation with the seller to understand their preferred settlement timeline. Determine whether they wish to settle before or after the Christmas/New Year break.
2. Seek contractual advice: Consult with your solicitor or conveyancer to review the contract terms. Specifically, check if the contract includes a clause addressing the Christmas/New Year closure period and understand how this might impact your obligations and timeline.

For Sellers:

1. Consult with your Lawyer/Conveyancer: Discuss with your legal representative their office closure schedule during the Christmas/New Year period to ensure alignment with your transaction plans.
2. Communicate settlement preferences: Inform your lawyer, conveyancer, and real estate agent of your preference for settling either before or after the Holiday Period, so they can manage the transaction accordingly.

Will Hindsight Legal Advisers be open over the Christmas holiday period?

Our offices will be open during the Christmas Holiday Period and so, we are available to assist you with any of your property buying or selling concerns. Please get in touch with us using one of the below buttons or alternatively, visit our Buying a Property Information Centre or Selling a Property Information Centre to get more information on our services or to simply get an instant quote. We’re here to help you every step of the way!