Please help - settlement postponed issue

[rooster78]

Hello Guys,

We are really bad situation here where we received email from our solicitor saying that the Vendor's solicitors have informed them that the settlement has been postponed by a week due to unforeseen circumstances. Settlement was supposed to be on 7 Feb now moved to 14 Feb Our problem is we have also given vacant notice at current rental property ( given last date as 10Feb).

Please let us know what to do in this case? My solicitor does not give us any clear idea. All he says is we cannot do anything with the postponed plan. Is it normal to see such postpone plans? Appreciate your inputs guys.


Anna and Glen

 

[fullylucky]

live in a regular motel send the receipt to their solicitor and have it deduct from purchase price of the property. say you spent $500 on motel and you purchased property was $600,000

then you now only have to pay $599,500.

Do not over do it and spend the night at like a 6 star hotel and expect vender to pay.

 

[rooster78]

Thanks fullylucky But with truck load of furniture and other items in home I think this may not be good option

Primarily I'm trying to understand if such postpone issues are common esp when we already had 84days long contract Its bit shock to get this last min surprise

 

[perthguy]

Thanks fullylucky But with truck load of furniture and other items in home I think this may not be good option

Primarily I'm trying to understand if such postpone issues are common esp when we already had 84days long contract Its bit shock to get this last min surprise

This happened to me when I bought a house in Melbourne. My settlement solicitor made errors in the paperwork which took time to resolve. Settlement was delayed and I paid a penalty. It didn't bother me to pay the penalty to the vendor, I was late so fair is fair. It did bother me that my solicitor made mistakes that delayed settlement.

You should get penalty interest.

 

[Aaron_C]

You should get penalty interest.

He's the purchaser so no penalty interest for him.

Only thing you can do is ask for some sort of compensation from the vendor but it won't be much.

 

[perthguy]

He's the purchaser so no penalty interest for him.

Only thing you can do is ask for some sort of compensation from the vendor but it won't be much.

D'oh! Also, mine was in Victoria... different contracts. I was just reading this:

"Generally, contracts of sale give the vendor the right to delay the settlement for at least two weeks without penalty."

http://resicert.com/inspections/delayed-settlement-what-are-the-buyers-rights/

As usual, check your contract.

 

[Bats]

He's the purchaser so no penalty interest for him.

Only thing you can do is ask for some sort of compensation from the vendor but it won't be much.

Is that right, the purchaser cannot claim penalty interest.

Over in the wild west there is a period of grace of 3 days and should settlement be delayed any longer, either party can claim penalty interest from the other.

Off the top of my head, I can't remember the interest rate used to calculate the penalty.

You learn somtheing everyday.

 

[Colin Rice]

Off the top of my head, I can't remember the interest rate used to calculate the penalty.

9% interest based on purchase price.

Avoided one the other day due to a bank stuff up.

 

[Colin Rice]

Our problem is we have also given vacant notice at current rental property ( given last date as 10Feb).

Contact PM and explain the circumstances and negotiate a pro rata rental payment providing incoming tenant is not already planning to move in on the 11th. Offer to pay compensation to incoming tenant if required and then try recouping the money from whoever is at fault for the delay.

Would be better than lugging your furniture around.

 

[DaveM]

Yeah, trying to extend your lease is your best bet

 

[Terry_w]

These things happen all the time. Possibly caused by the vendor having his loan cross collateralised.

Not much you can do unfortunately. Expect further delays too.

 

[Scott No Mates]

Put on your tenant hat. Overstay your lease by the few days and wait for the agent to hit the panic buttons to get you out by the book. This will give you a couple of weeks grace.

 

[Terry_w]

Put on your tenant hat. Overstay your lease by the few days and wait for the agent to hit the panic buttons to get you out by the book. This will give you a couple of weeks grace.

This is what usually happens. But it can have a domino effect as the person who had purchased this property would not be able to move in when expected. They may have to delay leaving their property..