Settlement day should be simple: money changes hands, keys get handed over, and everyone moves on with their lives. But I’ve watched 30 transactions hit serious problems in the past 12 months, and the patterns are becoming impossible to ignore.

Let me walk you through the three biggest culprits and what you can actually do about them.

Finance Approval That Wasn’t Really Approval

This is the nightmare scenario that’s become disturbingly common. A buyer gets “conditional approval” from their bank, everyone assumes finance is sorted, and then three days before settlement the bank pulls the pin.

What’s changed? Banks are conducting second valuations much more frequently, especially for apartments. I had a buyer with $200,000 deposit ready to go, full approval letter in hand, purchasing a unit in Chatswood. The bank sent their valuer out two weeks before settlement and came back $80,000 under the purchase price.

The buyer couldn’t make up the difference. Settlement delayed by six weeks while they found alternative finance at a higher interest rate. The seller was furious, the buyer was stressed beyond belief, and everyone lost money.

Here’s the thing: “conditional approval” and “unconditional approval” sound similar but they’re worlds apart. Real unconditional approval means the bank has done their valuation, assessed your actual payslips (not the ones from three months ago), and committed. Everything else is conditional, no matter what the mortgage broker tells you.

Strata Reports Nobody Actually Read

I cannot tell you how many times buyers waive the building inspection only to discover major strata issues after they’ve committed. The worst case I saw was a couple who bought into a building with a $3.2 million special levy coming for facade repairs.

They got the strata report. It was sitting in their email. They just never opened the attachment that detailed the engineering assessment and upcoming works.

When they found out, they tried to pull out. But they’d gone unconditional. Their solicitor fought it, arguing the seller should have disclosed, but ultimately they were stuck with a property that needed $47,000 in special levies within 18 months.

The NSW Fair Trading strata information requirements are actually quite comprehensive. The problem isn’t access to information—it’s buyers not reviewing what they receive.

The Chain Reaction

This is where someone’s purchase depends on their sale, which depends on their buyer’s sale, which depends on… you get the idea. When you’re four or five transactions deep in the chain, one wobble anywhere creates chaos everywhere.

I had a seller in Neutral Bay whose buyer was relocating from Melbourne. The Melbourne buyer’s property fell through because their buyer couldn’t get finance. My client’s settlement got pushed back twice, they’d already moved into temporary accommodation, and they ended up paying double rent for seven weeks.

The legal bills alone were eye-watering.

Chain transactions aren’t always avoidable—most people need to sell to buy. But understanding where you sit in the chain and having contingency plans makes an enormous difference.

What Actually Protects You

Let me give you the practical advice that most agents won’t because it makes deals harder to close.

For buyers: Don’t go unconditional on finance until you’ve seen a bank valuation. Yes, this might mean a longer due diligence period. Yes, sellers might not like it. But I’d rather lose a deal than watch a client’s deposit disappear because the bank changed their mind.

For sellers: Ask probing questions about your buyer’s finance situation. Where are they in the approval process? Is it conditional on anything? Have they provided all documentation to the bank? A good buyer’s agent will answer these honestly.

For everyone: Read. Every. Document. The strata report, the contract, the pest inspection, the building report. If you don’t understand something, ask. That’s what solicitors and agents are for.

When Things Do Go Wrong

If settlement looks shaky, communicate early. I’ve seen situations rescued because the buyer told the seller about finance issues three weeks out, giving everyone time to find solutions. I’ve also seen disasters unfold because nobody spoke up until two days before settlement.

Your solicitor should be your first call if anything feels off. They can often negotiate extensions, adjusted terms, or alternative arrangements that keep the transaction alive.

The Bottom Line

Property transactions involve massive amounts of money and complex legal processes. The idea that they should always go smoothly is optimistic at best. But most problems are preventable if you’re thorough during due diligence and honest about where things stand.

I’ve been doing this long enough to know that the smoothest settlements come from the most cautious buyers and sellers. The ones who check everything twice, ask difficult questions, and don’t cut corners to save a few days.

It’s not exciting advice, but it works.

Linda Powers specializes in residential property sales across Sydney’s Eastern Suburbs and Lower North Shore.