hey
settlement is sposed to be tomorrow, i spoke to the bank yesterday and they acted like it was all fine. but then i got a phone call from our solicitor just now and they said that the bank said they most likely wont be ready for settlement tomorrow.
so what happens if they arent ready??? will we not be able to get our funds and will have to wait til our bank is ready to close our mortgage?
what a downer!!
thanks in advance for ur advice
Happens every day of the week and could be for a number of reasons.
If the loan documents where all back and correctly signed 3-5 days prior to settlement should be no reason why you cant proceed. Coming upto Xmas many lenders are taking bookings a lot further ahead than normal but this happens every year.
Get your Broker or Banker to push it and see if they cant get the Settlement happening as otherwise you maybe in default and up for penalty interest to the Vendor.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
It may be a simple as just applying for a settlement extension (quite common). Hopefully you have friendly sellers
Hi Richard,
sorry to jump in on karens thread, but my problem is in reverse: What action can I take if my Vendor is delaying settlement because he lost the title and has to apply for a new one? settlement was supposed to be on the 8th of Nov and it's now the 11th!! My funds are all ready to go.
Thanks in advance for your suggestions.
regards,
Dave
surely if they (the vendor) can charge you delay fees you can do the same to them?
Thats what I thought Illuminati, I have three tenants all paying rent this week… do i miss out on that too?
For either case it would depend on the Contract of sale and in which State the properties are in, in some States there may be provision that settlement may take place within 7 or 14 days of the actual settlement date
In the case of the Bank not being able to settle, and as previously posted if they had documents 3-5 working prior to settlement and they were all in order, then any penalties charged by the vendors should be reimbursed by the Bank. The Bank should've known the settlement date when documents were prepared if not before then so no excuse not being able to meet settlement
For the vendor delaying due to lost title, once again depending on the provisions in the contract and which State you maybe be able to claim actual costs incurred or penalty interest. However in these type of cases you may need to demonstrate actual costs have been incurred ie additional rent paid before being able to settle and move in etc
Edit: This is not legal advice and you should always refer to your solicitor or conveyancer as these instances is why you are paying them.
Thanks MarJac, the I/P is in SA. From what I understand I will only miss out on a weeks rent (350), but I don't think my mortgage payment is due till next month anyway. So other than inconvienience, i don't think i have incurred costs for the delay (as yet anyway).
Hope they grant the extension for you. We had the bank come through only hours late and the vendor sold to someone else within 2 hours of when our settlement was meant to happen – and they sold for $30k more than they were getting from us – it will always be the one that got away!
This sorts of things happen all the time.
I attended a settlement once and it didn't happen because one of the bank cheques didn't have 2 signatures on it. So the other party refused to settle. Had to go back to the bank and get the second signature and do it the next day.
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
generally there are no penalties against the vendor for late settlement. It is the vendor’s contract not yours.
Its frustrating but as Terry & Richard say it is extremely common.
The banks will delay settlement for as long as possible in order to obtain some further interest payments. Look at CBA have a 30 day discharge notice and are no flexible on this in most circumstances as they want to make money.
I had the same situation were my property settlement was delayed as St George were not ready by the settlement date and they didnt give a stuff. I was told you would need to sort it out with the vendor. No explanation nothing. Lucky i had an understanding vendor who was happy to wait. Mostly you would find a flexible vendor.
I suggest you read your loan documents also as it will state the timeframe for discharge requests should you sell and you may be in the vendors shoes etc one day.
ok time for an update: they agreed to the extention til monday but requested early entry. they got in there this arvo. phew!
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