Join Australia's most dynamic and respected property investment community

Adjustments - delayed settlement

Discussion in 'The Buying & Selling Process' started by LucyCat, 12th Aug, 2016.

  1. LucyCat

    LucyCat Active Member

    Joined:
    5th Jan, 2016
    Posts:
    28
    Location:
    Adelaide
    Dear all....

    Just wondering what should have been done with the adjustments if the settlement was delayed.

    Scenario :

    Property was to be settled on 24/06. Everything was ready and calculated accordingly. However, the settlement didn't happen until 01/07 (regardless what reason)

    What would happen to all the adjustments(council rate, water.... ) ? Normally would the buyer's conveyancer re-calculate all the adjustments or leave as they were?

    Thanks a lot.
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,949
    Location:
    Sydney
    Possibly.
    Depends how long it was delayed and if cheques had been drawn.
     
    LucyCat likes this.
  3. LucyCat

    LucyCat Active Member

    Joined:
    5th Jan, 2016
    Posts:
    28
    Location:
    Adelaide
  4. D.T.

    D.T. Adelaide Property Manager Business Member

    Joined:
    13th Jun, 2015
    Posts:
    5,569
    Location:
    Adelaide, SA
    Should be recalculated for new date.

    If very late notice of delay given, eg on 24/6 morning, then cheques already made might need to be redone. Cost of doing this can probably be passed onto whoever's at fault?
     
  5. marty998

    marty998 Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    125
    Location:
    Sydney
    Sort it out with an EFT transfer afterwards?
     
  6. LucyCat

    LucyCat Active Member

    Joined:
    5th Jan, 2016
    Posts:
    28
    Location:
    Adelaide
    Thanks, @D.T.

    Recalculation for the new date was what I expected. But according to @Terry_w 's reply, recalculation doesn't always take place.

    I was the buyer. Settlememt was delayed for a week. The check wasn't drawn for the original settlement date. My conveyancer did not re-calculate. In result, I paid 7 extra days of council fee, water...

    That extra money was not big enough to be worried about, but I really want to know if this is normal.
    Not sure if I should use the same conveyancer for the next purchase tho. ( I hope I am not trying to make a mountain out of a molehill. )
     
  7. JDM

    JDM Well-Known Member

    Joined:
    19th Jan, 2016
    Posts:
    145
    Location:
    London (ex Brisbane)
    I can only speak for Qld but it can really go either way. If I act for a seller I would usually make it a condition of agreeing to an extension of the settlement date that the adjustment date remains the original settlement date to ensure my client is not prejudiced by the buyer's delay. In the absence of an agreement the adjustment date would be the settlement date.
     
    LucyCat likes this.