Hi Guys,
I recently sold my investment property and it was due to settle on December 31st. It is now January 15th and the banks are still delaying the settlement (from the new owners end). The new owners moved in on the 24th of December and I am charging them a rental of $250 per week. I accepted a lower price to get the 30 day settlement and now it has been pushed out to 45 days! They don't even know if it will settle before the end of the week!
Am I entitled to receive any penalty fees due to the delayed settlement? I am losing money every day as the rental does not cover my loan repayments and the money could also be working for me in other investments.
Any help would be greatly appreciated!
Cheers,
Brad
Get onto your lawyer and push them to issue a notice to complete. This has to be issued to force the purchaser to complete the transaction and can only be done after 14 days past the settlement date.
You can also charge penalty interest for the late settlement. The amount of interest you can charge will be in the standard contract.
Speak to your conveyancer.
Cheers
K
Thanks for the fast reply guys, much appreciated!
Cheers,
Brad
When did you last agree to the extension and the new terms? if you agreed to extend to this Friday, then you have an obligation to stick with that. The opportunity to agree to extend again (if they ask) is your chance to agree to the extension conditionally upon them paying the default interest (currentl 12.5% in Qld). Problem is that if they dont agree, then the contract could then fall over. Probably not likely, but something you need to discuss with your solicitor. Good luck.
If the contract does fall over, then you keep the deposit (hopefully you haven't reduced that below 10%).
they suck!, depending on which side of the negotiation you are…
You must be logged in to reply to this topic. If you don't have an account, you can register here.
