- pasandbecMember@pasandbecJoin Date: 2005Post Count: 122
I will hopefully be selling my IP (in Canberra) very soon and I just wondered if anyone knew what is the shortest settlement period I can ask for… from memory the standard is 6 weeks after exchange of contracts. The house will soon be vacant (no tenant paying my mortgage repayments) so the quicker the settlement, the better.
Cheers!raddlesMember@raddlesJoin Date: 2006Post Count: 187
we had a 30 day contract for a sale in Canberra – mind you it didn't settle on time because the Purchaser's bank was still sorting mortgage documents when settlement was due
I reminded the purchaser of the terms – that I could withdraw from the contract or have him pay penalty interest – it was very quickly sorted out from there
so I suggest you put 30 days down – as that should be a sufficient time to allow the purchaser to make their enquiries and satisfy their lender's requirements
thankspasandbecMember@pasandbecJoin Date: 2005Post Count: 122
Thankyou Raddles, you've been very helpful. I will talk to my solicitor about making the contract 30 days between exchange and settlement….cheers.XeniaMember@xeniaJoin Date: 2002Post Count: 1,231
We have managed to do 10 day settlements in the past. There is no formula, if you are cashed up and not relying on finance then you need to ask how long it would take the vendor's bank to discharge mortgages etc. Some banks are better than others.
If you are dealing with perpertual trustees as the mortgagor, forget quick settlements, their processes are very long and convoluted. We try to avoid dealing with them where possible!