Settlement Penalty Charges

[regrow]

My partner and I have a question in regards to penalty charges.

We are selling a property in WA which was to settle today, but as the buyer only returned the land transfer papers to the settlement agent (Representing both parties) yesterday, settlement has been postponed.

We phoned the agent to find out why it was returned late and advised that we want to charge penalty rates.

The agent said it was the buyers fault and that there is a 3 day grace period before we can charge penalty rates. Is this the case?

The agent also said that because they are representing both parties that this might cause some friction.

What if it is the agents fault, can we have these penalty rates deducted from there fees?

Should we phone the buyer and ask them why/if they returned the papers late?

Thanks

Regrow

You are a fool for 5 seconds if you ask a question, but a fool for life if you don't.

[XBenX]

Regrow - nice sig!

I know WA property law is different to the markets I have experience in so I will leave the reply to the experts.

I did notice that you mentioned the RE was representing both parties?

[Jimmyjamjars]

Hmmmm,
Don't know about the 3 day grace period, I know that, as a purchaser, I recently needed to extend settlement on a contract by 3 days and got charged penalty interest for the 3 days at the mandatory 11% interest. Don't know if laws are different elsewhere, mine was in QLD.
JIM

[dtraeger2k]

Hi,

My most recent purchase was in Perth, and had the same settlement co as the seller.

Turned out the vendor was late for a few reasons and I was late for a few reasons and so we didnt charge each other anything.

And yes, I was informed of the 3 day grace period also.

-Regards

Dave

[paulie]

Hi regrow,
You'll find the WA rules are pretty much as previously mentioned. That is that there is a 3 day grace period from the due settlement date on the contract before epnalty rates can apply and which ever party is at fault and is not ready to settle by the due date, the other party can charge the faulty - guilty party penalty interest on the property contract amount (12% per annum calculated daily).

As to the real estate agent worring about fricton - hahahahaha. Just contact your settlement agent or solicitor and demand penalty rates be paid if settlement doesn't happen within the 3 days from the due date.

Good luck

paulie

[regrow]

Thanks for the replies. Much appreciated. :)

Regrow