Notice to Complete

Hi to all you great minds
Currently selling property in NSW with an unconditional contract. Let the purchaser set completion date 26/08/09. Agreed to earlier settlement after contract signed of 25/08/09. Both days have now come and gone. REA is holding 10% deposit (or he had better be as the contract states 10% has been paid). No good reason for the delay in settlement given, in fact, difficulty to actually ascertain what is happening. My solicitor has been told that purchaser has arranged one loan to purchase two properties, the second now with some hold up and the finance company will not split the loan. Today the purchaser's conveyancer (not solicitor) advised mine that they now want to settle Friday next week. I hve instructed my solicitor to issue a Notice to Complete within fourteen days with time being of the essence.
Have already invoked penalty interest at 10% on outstanding balance. It's not critical to sell, however, I want to buy another property without getting into finance again. This time for retirement. I am more than prepared to terminate the contract and keep the deposit.

Comments please, have I done the right thing or not..
 
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penalty interest???

it all sounds good - but when you speak to the lawyers you start to hear terms like 'quantifiable damages' and in the end if you get most of what you want you will be happy i.e. if you settle onthe property there are no damages, damages are the alternative.
 
Comments please, have I done the right thing or not..

Lenders are taking a bit of time lately with the backlog of FHBs trying to get over the line by 30 Sept. and your purchaser is trying to get the lender to do something not bog standard, so its taking time.

But in my opinion, you did the right thing in issuing a notice to complete and giving them a bit of hurry up with the penalty interest.

This is some hurt money to make the purchaser give his people some hurry up also. I trust it goes well for you. :)
 
In qld you can could have rescinded the contract and kept the 10 %.

people generally dont know what " time is of the essence" It doesnt mean, the date of settlement is important. It means complete on day X, or the seller has the right to burn the contract, retain your deposit and potentially sue for breach of contract.


Given that definition, I think you have provided a good middle road option

ta
rolf
 
Thought I would let you know, sale settled today, they also paid interest at 10% per annum for the 10 days since contract settlement date.

Thanks for your comments and therefore assurance to me that I was on the right track.

Next job is to find a new house, then pack up in north qld and move.

Thanks again
Diane
 
Thought I would let you know, sale settled today, they also paid interest at 10% per annum for the 10 days since contract settlement date.

Thanks for your comments and therefore assurance to me that I was on the right track.

Next job is to find a new house, then pack up in north qld and move.

Thanks again
Diane

I have the question -- is it ok for me to terminate the contract (I am the sellor) and give deposit back to them if they can not settle on the agreed date?
 
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