Settlement

Discussion in 'Legal Issues' started by july, 29th Nov, 2002.

  1. july

    july Member

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    Hi Can anyone tell me what happens when settlement is delayed by the vendor? Do the purchasers generally incur any expenses. I have heard that the banks charge a fee when settlement is delayed.
    Thanks
     
  2. asy

    asy Member

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    By how long?

    There are remedies, and penalties available, but usually it's not worth the effort if the settlement is only delayed a few days.

    However, if it goes over 14 days you can start to apply penalty payments, or in an extreme case, issue a rescision notice giving them 14 days to settle or the contract will become void and you will be entitled to a refund. (your solicitor should advise you what you are entitled to)

    Do you know why they are not settling?

    Is this to do with the repairs to the house (same house?) ?

    hope this helps,

    asy :D
     
  3. july

    july Member

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    H Asy
    Yes, it is the same house.
    I am due to settle in 5 days and the vendors agents have not yet booked in a settlement day. The repairs have not yet been commenced.
     
  4. asy

    asy Member

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    Ok, main question here is Do you WANT to settle?

    I mean, do you really want to settle prior to the repairs being completed?

    I think, based on the quantity of damage you previously described, I would hesitate to settle without some serious compensation for the state of the property.

    What are you intending? Do you want to settle as it is?

    Contact your broker/bank and let them know what's going on, that you are possibly not going to settle for a month or so, and see how you go.

    ROLF!!! Are there generally fees involved when settlement is delayed?

    Don't forget, you are WELL within your rights not to settle until the property has been restituted to the condition it was in when you signed.

    A truck through the front wall of the house does not constitute Fair wear and tear!! ;)

    Let us know...


    asy :D
     
  5. july

    july Member

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    Hi Asy
    Just something you might be able to answer - the vendors of the property called us and offered us to move in (prior to settlement) as the current tenants have vacated. I found this odd and wondered why they would make such an offer when there is a fair amount of work to be done on the propery. Naturally, we declined the offer and will wait until after settlement. Perhaps it is just my suspicious mind but I wondered if they were trying to manipulate the situation ie: have us move in and then blame the delay on us?????
     
  6. asy

    asy Member

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    Good move July...

    The only reason i can think of is that they were trying to get out of making the repairs.

    Did they say under what terms you could access the property?

    Once you take posession of a property prior to settlement you accept the property AS IT IS on the day you take posession. Unless there are contracts to the contrary, you basically waive your rights to having them repair the damage.

    Two questions for you.

    IS this an IP or PPOR?

    Where is your solicitor in all this? I think I would be very careful and not do a thing in this case without his/her OK.

    asy :D
     
  7. july

    july Member

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    Hi Asy
    The property is an ip.
    At present we do not have a solicitor, we have a conveyancer only who has been very . Do you think we should consult with a solicitor on this one, if so, do you know anyone?
    We have seen the architect designed plans for the repairs and are happy with the proposal, it is in fact much better than the original. I do not mind the settlement being delayed under the circumstances, it is an unfortunate situation for everyone involved, most of all, the vendors.
     
  8. asy

    asy Member

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    Hi July..

    Your sentence "we have a conveyancer only who has been very " seemed unfinished..

    I think if I were you I would say to the vendors, look, take as long as is necessary, but you will have to pay any additional costs we incur due to the late settlement, but we won't charge you penalties.

    This is the nice alternative. It wasn't the vendor's fault that the house was damaged, and they seem to be attending to it's repair in a timely manner.

    In my humble opinion, it shouldn't matter in a case like this whether you are dealing with a conveyancer or a solicitor. (The only time I feel that solicitors are a distinct advantage is where there are other than conveyancing issues involved, such as trust setups, or development plans...). The other thing to remember is that all conveyancers are 'Backed up' by a solicitor.

    This means that if there is something your conveyancer doesn't know or isn't sure of, they can get solicitor advice.

    That being said, if you really want to change, PM me and Iwill give you some numbers.

    Talk to the conveyancer, and see what they say.

    hope this helps

    asy :D