Reasons to delay settlement

[luckyone]

Hi Guys,

As some of you may know, I'm getting ready to settle on my 1st investment property. It's a house that is currently under construction. We're due to settle in the next week, but there is still a lot to be done with the house. For example, there is currently no ceiling in the alfresco area. The roof is there, but the ceiling and lighting hasn't been put in.

Also, some of the variations we asked to be included (and are paying for) have not been done.

Finally, there are a lot of touch ups to paintwork, door frames etc that need to be done.

There's a few more things, but these are the main ones. Is this enough to delay settlement (if it's not finished in time)? Also, do I get to do another final inspection. I did one last week which is when I discovered this stuff wasn't done. A friend suggested holding back some money until the builder's finish this work. Problem is, that I'm worried if I do that that they make still take their time to do it. I'd rather withhold all of the money till it's completed.

Do I have any hope? I'm finding it hard to find out what are the basis for delaying settlement without getting penalties.

 

[mystery]

What does your solicitor say?

People on SS will give you good intentioned advice, but IMO you should be on the phone to whoever is handling your settlement and quickly if you want it sorted out before settlement. It is the job of your solicitor to take care of this for you.

Mystery

 

[luckyone]

Thanks Mystery. I have sent him an email detailing all of the problems with the place, but am yet to hear back from him (I did only send it yesterday though) so I guess I'll have to wait and see what he says. I just don't want to settle, get tenants in and then annoy them with the builders coming in regularly to fix things. Would annoy the hell out of me!

 

[Propertunity]

luckyone, I think you'll find with a house under construction, that the council will not issue an Occupation Certificate with ceilings missing etc, so unless this has happened the vendor will not be in a position to settle in any event.

Yes, you get as many final inspections before settlement as is needed to satisfy yourself that the works are complete.

Worst case scenario for you is that you proceed to settlement but withhold an agreed amount like $10-20K or whatever would reasonably cover the costs to complete, which is held in trust until the works are completed (also on a time line).

But as the others have said, be guided by your legal representative.

 

[luckyone]

luckyone, I think you'll find with a house under construction, that the council will not issue an Occupation Certificate with ceilings missing etc, so unless this has happened the vendor will not be in a position to settle in any event.

Yes, you get as many final inspections before settlement as is needed to satisfy yourself that the works are complete.

Worst case scenario for you is that you proceed to settlement but withhold an agreed amount like $10-20K or whatever would reasonably cover the costs to complete, which is held in trust until the works are completed (also on a time line).

But as the others have said, be guided by your legal representative.

That's the problem Propertunity, that the certificate of occupancy has already been issued. I was given the application to sign a couple of weeks ago, but didn't as there was no roof on the alfresco area (which i thought should be done before I said everything was ok). About a week after that, I get a call from my solicitor saying that the compliance certificate and certificate of occupancy have been faxed to him and we have 14 days to settle. Not very happy about that! Hubby has rung up the property council (I think that's what he called them) and they said that the certifier is employed by the builder so he could have just signed it for him. Pretty patetic really.