Penalty interest for auction delayed settlement

Discussion in 'Property Finance' started by Directproperty, 26th Oct, 2018.

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  1. Directproperty

    Directproperty Member

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    Adelaide
    Hi all, does anyone know what the penalty interest is in South Australia if you delay settlement after purchasing at auction? I will contact my conveyancer on Monday to check but wondered if anyone knows on here? Anyone been in this position? Is it up to the owners whether or not they charge you?

    Thanks in advance.
     
  2. Terry_w

    Terry_w Mortgage broker licenced 4 tax/legal advice Business Member

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    Depends on the terms of the contract.
     
  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    As TW said, depends on contract, typically 10 % annually on the entire amount calc per day

    so on 500 k buy would be 137 a day, plus maybe a legal fee to issue a notice to complete


    why late ?

    ta
    rolf
     
  4. Directproperty

    Directproperty Member

    Joined:
    26th Jun, 2015
    Posts:
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    Location:
    Adelaide
    Thanks Terry and Rolf.

    I double checked the contract and it doesn’t specify what the default interest is if the purchaser can’t pay the funds at settlement. I’ll go with 10%, as Rolf said and check with my conveyancer for SA.

    I’m hoping not but settlement might be delayed because of a tenant in my property not allowing us in to do open inspections even though he was given 2 weeks written notice!!

    Thanks.