Join Australia's most dynamic and respected property investment community

90 days settlement, what to be aware of?

Discussion in 'The Buying & Selling Process' started by R.B., 17th Feb, 2016.

Tags:
  1. R.B.

    R.B. Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    54
    Location:
    Sydney
    Dear All,

    We have signed a contract, after we signed, the seller asked to change to 90 days settlement or take the house back to market. the seller is moving overseas, and he needs 90 days to settle to be able to move and sell unwanted items, seller is is not willing to negotiate. Not willing to settle on time and rent the house back. He agreed verbally to open the house for quotes, inspections,…etc. but nothing in writing.

    I am OK with the longer settlement, however I am not really sure of what I need to be aware of. The market is rising where we are buying, and I am worried that the seller may change his mind and try to pull out of the contract (not sure if this could happen though).

    Please let me know if you have been through something similar , and what I need to be careful about.

    Thanks
     
  2. JacM

    JacM VIC Buyer's Agent Business Member

    Joined:
    12th Jul, 2015
    Posts:
    1,106
    Location:
    Melbourne, Australia
    Has the seller signed the contract? If so they are stuck with the terms unless you are feeling flexible. Beware of a spiteful vendor that decides not to clean properly etc at handover.

    Either way perhaps agree to the 90 days in exchange for adding written terms into the contract re advertising for tenants before settlement. Speak to your conveyancer, and let your broker know of any changes.
     
    Paterson00 and R.B. like this.
  3. JacM

    JacM VIC Buyer's Agent Business Member

    Joined:
    12th Jul, 2015
    Posts:
    1,106
    Location:
    Melbourne, Australia
    Another thing to be very wary of is how long your loan docs are valid for. The loan docs that the bank will issue you in the post will have a specified date on which they expire if you've not settled by then. That would be a huge problem for you so you don't want to miss that target. Again chat to your broker re this.
     
    Paterson00, Jacque and R.B. like this.
  4. R.B.

    R.B. Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    54
    Location:
    Sydney
    Thanks @JacM
    Contract is now signed and will double check with my broker.
     
    JacM likes this.
  5. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,943
    Location:
    Sydney
    Death or insanity has a greater chance of happening with longer settlements. consider appropriate special conditions.

    Also as Jac says check the validity of any approval and also valuations - sometimes these expire if not settled within X months.
     
    R.B. and JacM like this.
  6. JacM

    JacM VIC Buyer's Agent Business Member

    Joined:
    12th Jul, 2015
    Posts:
    1,106
    Location:
    Melbourne, Australia
    All the best with it @R.B. If you haven't done so already, select a conveyancer/solicitor to represent you and make contact right now.
     
  7. Jacque

    Jacque Buyers Agent and Bookworm, Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    516
    Location:
    Sydney
    I echo Jac and Terry's sentiments above. Unfortunately, when NSW vendors delay settlement there is no penalty to them (unlike purchasers) however my recommendation is to immediately issue a "Notice to complete" once the original settlement period has passed, and this way they have 14 days to do so. Definitely chat to your solicitor and make sure they are working for your best interests here. Good luck.
     
    JacM, Paterson00 and R.B. like this.