Property Settlement delays- Know Your Rights!

There are various reasons why property settlement could be delayed, either by the buyer or vendor.

Here are the 3 most common reasons:

·     Bank Delays & Late Documents

Sometimes banks aren’t ready because they are still waiting on all the documentation, so be proactive and ensure that you return all relevant documents to the bank as soon as possible. Also, if either party does not return all the documents to other relevant parties in line with the necessary timeframes, delays will ensue.

·     Final Inspection Issues

Sometimes if repairs that were supposed to occur before settlement do not happen, delays will result and affect the settlement.

·    Subject Sales

If a vendor is upgrading to another property and the purchase is dependent on the sale of the original property, if problems occur, it can affect the agreed settlement date.

What are your rights when settlement is delayed?

·     QLD

Penalty interest can be charged and either the vendor or buyer can terminate and sue for damages

·     WA

Penalties apply after a leniency of 3 business days

·     NSW

The vendor can charge interest for each day that settlement is delayed & issue a Notice to Complete -allowing the buyer 14 days to complete the sale).

·     Victoria

If a vendor delays settlement, the purchaser can’t charge interest rates. A vendor can charge interest rates if the buyer wants to delay. Each side has the right to rescind after a delay of 10 business days.

·     Tasmania

Either party can issue a Notice to Complete which gives the other party an additional 14 days.

·     SA

There is no obligation for either party to agree to delay settlement and changes to the settlement date can only take place if both sides agree.

·     NT

Vendors and buyers can issue a written default notice giving the other party 10 business days to remedy the default

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Marlene Liontis
Thursday, 12 September 2019

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