Settlement delay - penalty interest question

Discussion in 'Legal Issues' started by opal3259, 23rd Jul, 2017.

Join Australia's most dynamic and respected property investment community
  1. opal3259

    opal3259 Well-Known Member

    Joined:
    13th Jul, 2015
    Posts:
    144
    Location:
    Melbourne
    Hi Folks,

    Dealing with a very sketchy buyer on a transaction at the moment.
    Multiple issues up till this point... and they missed the settlement date a couple of days ago.

    Have spoken to my solicitor and a default + rescission notice has been issue.

    Question for you guys: In Victoria, does the penalty interest kick in the day after the settlement crash?
    In other words, if settlement is on a Friday - does the penalty start on Saturday or Monday?
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    41,667
    Location:
    Australia wide
    What does your contract say?
     
  3. opal3259

    opal3259 Well-Known Member

    Joined:
    13th Jul, 2015
    Posts:
    144
    Location:
    Melbourne
    Unless I've missed it (quite possible), the section that refers to breach + penalty fees doesn't specify working vs calendar days.
     
    Perthguy likes this.
  4. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    27,095
    Location:
    Sydney or NSW or Australia
    Day is a defined term, you charge interest every day ending in 'y'.
     
    opal3259 likes this.
  5. opal3259

    opal3259 Well-Known Member

    Joined:
    13th Jul, 2015
    Posts:
    144
    Location:
    Melbourne
    Got it - thanks Scott.
     
  6. Perthguy

    Perthguy Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    11,767
    Location:
    Perth
    What happened with this?