Vendor can't meet settlement date

[kennyboi]

Hi,

The vendor I am purchasing from can't meet the settlement date. My conveyancer said there is nothing I can claim from them. However, if I miss the settlement date, I will be liable to penalties. Is it fair?

Furthermore, if I incur a direct loss by having a signed a lease on my current place to start, and they delay it again causing the tenant can't move in (because I can't move to the new place), I could be held liable for any costs incurred by the tenants such as removalist/storage costs and alternate accommodation such as hotels.

So I am wondering if the unfair contract terms would apply to enable me to seek compensation should a direct loss happens.

Thanks

 

[alexlee]

The vendor I am purchasing from can't meet the settlement date. My conveyancer said there is nothing I can claim from them. However, if I miss the settlement date, I will be liable to penalties. Is it fair?

What's in the contract?

Furthermore, if I incur a direct loss by having a signed a lease on my current place to start, and they delay it again causing the tenant can't move in (because I can't move to the new place), I could be held liable for any costs incurred by the tenants such as removalist/storage costs and alternate accommodation such as hotels.

Do you have the right to lease out a property you don't own?

 

[Terry_w]

You should never assume settlement will occur on settlement date. Frequently it doesn't - about 20% of the time possibly.

You won't be able to claim this is an unfair contract either. You are a grown boy (or boi in your case) and you freely entered the contract which is probably a standard contract and you probably are legally represented

 

[Peter_Tersteeg]

It is unfair and it happens all the time. Unfortunately it is what it is.

We generally advise people not to book settlement on a Friday, or even a Thursday. There's a variety of reasons why settlement can be delayed and if you or a tenant needs to move in that weekend you're making yourself vulnerable.

Usually the delay costs a day or two. It's often because the vendors bank has trouble finding a title or there's simply too many settlements occurring to be able to schedule it in.

My own recent purchase was delayed by a week because one of the vendors was under 18. It had to go to court (or something like that) to ensure the minors interests were being met. Not our fault, not the vendors fault, just the law saying children need to be properly taken care of and the lawyers needing to prove this.

You may be able to negotiate for the tenant to move in prior to settlement. The vendor doesn't have to agree, but it can't hurt to ask.

 

[Propertunity]

...The vendor I am purchasing from can't meet the settlement date. My conveyancer said there is nothing I can claim from them. However, if I miss the settlement date, I will be liable to penalties. Is it fair?

No, it's not fair but it is what you signed up to, so it is legal.

Furthermore, if I incur a direct loss by having a signed a lease on my current place to start, and they delay it again causing the tenant can't move in (because I can't move to the new place), I could be held liable for any costs incurred by the tenants such as removalist/storage costs and alternate accommodation such as hotels.

You should not be signing leases when you are not the owner (as yet).

 

[Blueberry]

What's in the contract?



Do you have the right to lease out a property you don't own?

I think the OP meant that the house he is currently is living in (his PPOR) is going to be rented out, but they can't move in as he is still in it.

 

[alexlee]

I think the OP meant that the house he is currently is living in (his PPOR) is going to be rented out, but they can't move in as he is still in it.

Still doesn't matter. If the OP signs a lease to rent out his current PPOR, this is a separate issue to him buying a new place.

 

[kennyboi]

I think the OP meant that the house he is currently is living in (his PPOR) is going to be rented out, but they can't move in as he is still in it.

Yes, that is what I mean

 

[kennyboi]

It is unfair and it happens all the time. Unfortunately it is what it is.

We generally advise people not to book settlement on a Friday, or even a Thursday. There's a variety of reasons why settlement can be delayed and if you or a tenant needs to move in that weekend you're making yourself vulnerable.

Usually the delay costs a day or two. It's often because the vendors bank has trouble finding a title or there's simply too many settlements occurring to be able to schedule it in.

My own recent purchase was delayed by a week because one of the vendors was under 18. It had to go to court (or something like that) to ensure the minors interests were being met. Not our fault, not the vendors fault, just the law saying children need to be properly taken care of and the lawyers needing to prove this.

You may be able to negotiate for the tenant to move in prior to settlement. The vendor doesn't have to agree, but it can't hurt to ask.

Can I, as the purchaser, have any say on the new settlement date if vendor can't meet their settlement date without incurring a penalty?

 

[Terry_w]

Why not ask the vendor if you can move in before settlement under a licence agreement. I sold a place recently and let the new purchaser move in before settlement.

 

[kennyboi]

Why not ask the vendor if you can move in before settlement under a licence agreement. I sold a place recently and let the new purchaser move in before settlement.

Their tenant of their rental property which they are moving into can't vacate before original settlement date. So, they will still be living there.

 

[Terry_w]

Its a domino effect!

 

[Singo]

Buy in WA. We have better policies Even seller should pay penalty rates if you delay here!

 

[kennyboi]

Is there a limit how long each party can delay settlement for?

Can buyer rescind contract without penalty if settlement takes more than that limit?

 

[Terry_w]

Depends on what you agreed to.

Generally you can serve notice to complete and if they do not comply you could rescind the contract, generally after 14 days. You may then be able to claim damages.