Settlement delayed by Vendor

Hello!

First time poster from NSW - need some advice.

We have just purchased a unit, and asked for vacant possession since there are tenants who are not on lease. The tenants are a middle-aged man who is taking care of his elderly mother.

They have been unable to find a new place, and I am not sure if they have even been looking. They are waiting for public housing to give them a place. We are currently one month overdue on settlement, and this is starting to get very annoying. I've had to negotiate with our real estate agent to let us stay on in our rental because we couldn't move out.

I am unsure how to proceed. We can issue a notice to complete, but we may lose the place. There don't seem to be any penalties for vendors delaying settlement either. These tenants may end up staying for months (worst case scenario, YEARS) until they get a public house. I believe the vendor is going to tribunal, but they may also give them months on compassionate reasons.

At what point do should we decide to we move on and look at getting another property?

Any similar experience or advice would be much appreciated.

Thanks!
 
They are waiting for public housing to give them a place. We are currently one month overdue on settlement, and this is starting to get very annoying. ....These tenants may end up staying for months (worst case scenario, YEARS) until they get a public house.
You're right, they might be waiting years for public housing - this is not an option.

We can issue a notice to complete, but we may lose the place.
I'd issue a notice to complete. This puts the vendor on notice. Yes, worst case scenario, the vendor is unable to deliver vacant possession and you could rescind the contract (but you don't want to do this).

There don't seem to be any penalties for vendors delaying settlement either.
Correct - there are no penalties for vendors just purchasers. :(

I believe the vendor is going to tribunal, but they may also give them months on compassionate reasons.
Sounds like the vendor is doing what he can. I would not 2nd guess the outcome of the tribunal. Wait & see.

At what point do should we decide to we move on and look at getting another property?
At the point where you are able to rescind the contract and you actually want to take that course of action. Otherwise, sit tight and wait for the due process to run its course.

Worst case scenario is looking like a 3 month wait. It is not much in the grand scheme of things but it is a PITA for the present.
 
Thanks for the advice - I think the key word is patience here. Our solicitor just rang to say that tribunal has ordered them out by the 31st of October...however, I've gotten to the point where I just don't believe in a positive outcome :(

I don't understand how there can be quite steep penalties for the buyer delaying settlement, but not for the vendor. There are still significant costs for the buyer (inspections, solicitors, etc) not to mention the amount of time invested.
 
Thanks for the advice - I think the key word is patience here. Our solicitor just rang to say that tribunal has ordered them out by the 31st of October...however, I've gotten to the point where I just don't believe in a positive outcome :(
If they're not out by the 31 Oct., the next step is to have the sheriff go around and put them and their possessions out. A locksmith accompanies him and changes the locks. This can add a couple of weeks more to the process but no big deal really.

I don't understand how there can be quite steep penalties for the buyer delaying settlement, but not for the vendor.
Unsurprisingly, it is the vendor's solicitor who draws up the contract, so they are hardly going to put in clauses to penalise their own client in the event of non-performance.

Anyway, it sounds like you'll be in shortly. All the best. :)
 
At what point do should we decide to we move on and look at getting another property?

Now! Issue a notice to complete. If the tribunal has ordered them out by the end of the month and leave all good. If they don't leave then it may stretch on for quite a bit longer.
 
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