Delayed settlement by Vendors

[Daredevil]

on my recent purchase settlement was due on 13/03 but it was delayed by the Vendor's conveyancer saying the vendor has done a recent refinance and new bank hasn't got the loan documents yet.
My conveyacer is under the impression that I and not loosing anything due to the delay so nothing to worry (hose is already tenanted)
Apart of the loosing on the interest on 10% deposit is there any other losses for me given that it could delay up to 2 weeks now.

Thanks in advance

 

[Big Will]

I guess you are also missing out on the rent money but you haven't paid for it yet and this could also be beneficial for you unless the property is majorly cash flow positive.

The interest on the deposit is not yours, if you want to cancel the sale then you will get the money back without any interest (govt actually earns the interest) while it is being used a deposit.

However you are also getting free capital gains during this period.

I personally would just wait as you really are arguing over a couple of dollars which would easily be chewed up by lawyer fees.

 

[Shahin_Afarin]

on my recent purchase settlement was due on 13/03 but it was delayed by the Vendor's conveyancer saying the vendor has done a recent refinance and new bank hasn't got the loan documents yet.
My conveyacer is under the impression that I and not loosing anything due to the delay so nothing to worry (hose is already tenanted)
Apart of the loosing on the interest on 10% deposit is there any other losses for me given that it could delay up to 2 weeks now.

Thanks in advance

Why not charge them the interest you would have earned on the 10% deposit?

 

[Terry_w]

You won't be paying interest on the loan so delay as long as possible if it will be negative geared.

 

[Peter_Tersteeg]

It's unlikely that you're financially worse off for the delay unless the property is getting a yield of 7% or more. This is an easy way to own a property without paying for it.

I would imagine that the capital gains on the property is significantly more than the bank interest on a 10% deposit.

 

[Big Will]

Why not charge them the interest you would have earned on the 10% deposit?

Why don't they renegotiate the sale price due to the price of the property going back up?

I feel the purchaser has more to lose than gain by trying to charge 3% interest on 50k compared to the capital gains they have made and difference between mortgage and rent.

Seems like 3 out of 4 people would do nothing as you are in a better position. I would let them delay it for as long as possible, be great if they delay for 10 years as you have only put down a deposit and would be earning all that capital!

 

[Shahin_Afarin]

Why don't they renegotiate the sale price due to the price of the property going back up?

I feel the purchaser has more to lose than gain by trying to charge 3% interest on 50k compared to the capital gains they have made and difference between mortgage and rent.

Seems like 3 out of 4 people would do nothing as you are in a better position. I would let them delay it for as long as possible, be great if they delay for 10 years as you have only put down a deposit and would be earning all that capital!

Because they want to sell the property and the worst thing they can do is say no.

You don't want to be in a situation where the vendor is delaying the settlement indefinitely. This is silly. You need them to confirm that they can settle on a given day and there are penalties if they don't settle.

It works both ways.

 

[Big Will]

Because they want to sell the property and the worst thing they can do is say no.

You don't want to be in a situation where the vendor is delaying the settlement indefinitely. This is silly. You need them to confirm that they can settle on a given day and there are penalties if they don't settle.

It works both ways.

You can also destroy any goodwill for being so petty...

 

[Shahin_Afarin]

Its not about being petty its about being firm so they don't just extend the settlement indefinitely.

Its not uncommon (had one 3 weeks ago) for the vendor to delay the settlement and then had sellers remorse.

So just letting them extend is not the way to go. You need to give them a reason to settle ASAP.

But hey you have your way and I have my way of approaching such an issue.

 

[Daredevil]

Thanks guys great advice all around, no it is not greatly positive geared, just about neutral geared, so advice i will wait and see

 

[Jacque]

Have you issued a notice to complete yet? This gives vendor 14 days to settle. Speak to your conveyancer here.