i am due to settle on 3 apartments off plan settlement date is been brought forward 4 months with 14 days to settle what are the scenarios one settlement takes up to 3 months to settle ie coming up with deposits and funding of
penality interest how is that determined and option can i sell on during this process if i cannot settle
cheers
Its a bit hard to understand you without punctuation.
Are you saying you have 14 days to settle because it is completed early?
There will probably be a clause in the contract which states settlement with occur within 14 days of XX happening. This XX has probably happened and you agreed to this, so you must settle. If you cannot, depending which state you are in, they will probably issue you with a notice to rescind. From the date of this you have 14 days, usually, before they can rescind the contract, keep your deposit and keep the property, and maybe sue you. If the value has increased since you signed, this may be their strategy.
You may be able to onsell, but this will take time. You may also be able to negotiate a longer settlement if the vendor agrees, but this may be hard. Xmas is here too, so that will slow things down as well.
You have better start seeking finance and talk to your solicitor quickly
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Alwayslearning wrote:i am due to settle on 3 apartments off plan settlement date is been brought forward 4 months with 14 days to settle what are the scenarios one settlement takes up to 3 months to settle ie coming up with deposits and funding ofpenality interest how is that determined and option can i sell on during this process if i cannot settle
cheers
Penalty interest is usually stated in the contract. I was recently threatened with 15% per annum penalty interest interest if I did not settle in time. There are some developers who are not willing to negotiate these clauses even if you give the excuse that "my solicitor is closed down during the Christmas/New Year period"
Your solicitor is the key player in all this. Get him to negotiate for you. If that fails, you'll have to push your financier to get the settlement completed as soon as possible.
Alwayslearning wrote:can i sell on during this process if i cannot settlecheers
You need to ask the developer about this. I'm pretty sure that you can on sell but not until after settlement takes place.
I recently bought some land which is in high demand. The developer told me that if I want to on sell, that she was willing to contact some of the names on the waiting list for me. In this way I could sell direct to another person without incurring any sales commission.
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