Notice to Complete: Meaning, Time Limits by State and Rescission

Notice to Complete

Notice to Complete is a formal demand issued under a property contract requiring the defaulting party to settle within a fixed period, commonly 14 days in New South Wales and Victoria. If the buyer fails to complete, the vendor can terminate (rescind) the contract, keep the deposit and sue for damages. It is one of the most urgent triggers for bridging finance in Australian property transactions.

Why It Matters

A Notice to Complete creates a hard deadline. If a buyer's bank approval is delayed, their sale hasn't settled, or their funds are stuck, they face losing both the deposit and the property. This is where private lending and commercial bridging finance become critical: they can fund settlement within days to prevent termination of the contract.

How It Works

A vendor (or buyer) issues the Notice to Complete after the other party fails to settle on the contracted date.
The period comes from the contract and the state: commonly 14 days, not 14 business days. See the state list below.
If settlement still does not occur, the party not in default can terminate the contract (often called rescission), keep the deposit and claim damages.
Buyers facing a Notice to Complete often use bridging finance or a caveat loan to settle urgently.

By state: New South Wales, Victoria and Queensland

New South Wales: a notice to complete makes time of the essence. The standard contract convention is 14 days, the period must be reasonable, and the party serving it must be ready, willing and able to settle.
Victoria: the equivalent is a default notice under the general conditions of the contract of sale, giving the defaulting party 14 days to remedy. Default interest commonly runs at 2 per cent above the Penalty Interest Rates Act 1983 rate, currently 10 per cent a year.
Queensland: time is already of the essence under the standard REIQ contract, so there is no notice to complete period. Editions carrying clause 6.2 let either party extend settlement by up to 5 business days.
Rescission: once the period expires, the party not in default may end the contract, keep the deposit (usually 10 per cent) and claim damages. Older documents say rescind; the current standard contracts say terminate.

Common Use Cases

Bank approval delayed past the settlement date
Buyer's existing property sale has fallen through
Complex structure (trust, company) slowing lender assessment
Buyer needs urgent short-term funds to protect a deposit
Development site purchase at risk due to finance delays

Related Switchboard Resources

For legal guidance on property contracts, consult a qualified solicitor or visit legalaid.vic.gov.au.

How many days do I have after a Notice to Complete?

Commonly 14 days in New South Wales, where the period is a contract convention and must be reasonable, and 14 days under a Victorian default notice. Queensland has no notice period because time is already of the essence under the REIQ contract, only a possible extension of up to 5 business days. Check your contract and get legal advice immediately.

Can I get finance fast enough to meet the deadline?

Often, yes: private lenders and bridging funders can settle within 3 to 7 business days where the equity, title and exit stack up, which is inside the usual window. No approval or timeframe is guaranteed.

What happens if I don't settle in time?

The party not in default can terminate the contract (rescission), keep your deposit (typically 10% of the purchase price) and may also pursue you for additional damages or losses.