A recent media article indicates a issue all QLD buyers should be aware of that relates to LATE SETTLEMENT for a loan. It can lead to loss of a deposit and no purchase. Couple loses dream home after settlement bungle Now we cant possibly know all the facts BUT...It seems 1. The bank missed the settlement by just one day 2. The vendor terminated the contract and retained the whole deposit. This appears to be the case for QLD law in its strict reading. 3. The buyers lost the house they hoped to buy AND their whole deposit. Spoiler alert: Westpac later paid them the whole deposit plus $25K. So they appear to have settled in lieu of the bank accepting blame and did so quite promptly it appears. Its impossible to know why they accepted blame. And what cases could differ from this so they dont accept blame. I wouldnt assume all lenders will be so obliging in all cases. Delays can be caused by numerous parties on the buyer side of things incl a lender, its agents, the buyers own bank remitting cleared funds, illness, misadventure etc etc. A few things to take from this 1. Most states, but not QLD, allow a time period after a delay for a settlement to take place, with penalties. 2. QLD buyers be warned. Legal advice on additional clauses to remedy this defect in QLD law may be very wise. Many people say they didnt get a solicitor to review a contract prior to signing when buying and this is a perfect example of a issue all buyers need to consider. If permitted, a special clause that allows delayed settlement with penalties may be a excellent investment.
One for the brokers, if it's too late to get the clause in the contract, would lenders be willing to pay into vendor solicitor's trust account a day or two early? Borrower obviously would need to pay for the additional day or two's interest costs. Borrower would also presumably have already lodged a caveat before settlement to protect its interest.
Usually the other way about. A lender will want any additional proceeds "available" as cleared often 24-48hours earlier for this to be paid on the appointed settlement date. Thats not really the problem however as the late settlement attributable to the bank / agent etc was the factor. Not a caveatable interest if there is a breach of contract. To effect a title transfer no caveats can exist.
