Being new to PI
I have just found out that the Vendors Bank will not be ready to settle on 22nd Dec as detailed in all documentation agreed upon in Contract of sale and has now postponed until 24th December which is inconvenient for us and we are not happy about this – what can we do about this and is there any penalty for this sort of scenario?
We have changed Gas & Electric etc already for the date to coincide with settlement date and we are flat out on Christmas Eve
and are then going away and wanted this all finalized – can we do anything about this?It depends what is says in the contract. Different states have different provisions. In the NT for example, there is no penalty to the vendor if the vendor is not ready to settle. However in some states I know that the vendor has to pay default interest.
If your contract says that you, as purchaser, are entitled to default interest because of the vendor's delay, that is all you can do. And then you are only getting two days' of interest. You can't make them pay for your inconvenience or any costs you incur.
Property investing is full of inconveniences. A two day delay is pretty low on the scale of things that can go wrong.
Cheers
K
And watch out trying to settle on the 24th – if it is delayed again for any reason you may have to wait weeks to settle over the holiday period.
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
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