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Vendor delaying settlement date

Discussion in 'General Property Chat' started by Eggbert, 15th Jun, 2016.

  1. Eggbert

    Eggbert Member

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    Hi I want to see if anyone has had this issue. Obviously we have a property lawyer but I want to here anyones else's experience.

    We bought a house and originally agreed to move in, in 12 weeks due to the vendor needing time to find a house. The vendor bought a place the following week and wanted to change the settlement date to 4 weeks time now which we agreed to. They now want to extend it another 2 weeks and we have handed notice at our rental for that date and will have to move twice which is very inconvenient and costly.

    We have given them an option to pay for our accommodation for 2 week + extra moving cost OR we will give them a notice to complete on the day after the agreed settlement date. This would be enough time for them to take the notice to complete and still get the 2 weeks they needed but it puts them in a risky place if something falls through on the house they are buying

    We did this because the settlement date could keep changing for us due to all the people upstream of us trying to simultaneously align there settlement dates. We are at the end of the chain copping the extra expenses and stress each time one of the buyers changes their dates.

    Has anyone else had and experience like this? What are the possible outcomes?

    Keeping in mind they have exchanged contract on a new place so they will not want to lose their deposit.

    Thanks
     
  2. Big Will

    Big Will Well-Known Member

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    Mods this is a copy/paste from the same post in Buy/Selling Process (please remove one).

    @Rolf Latham
     
  3. Eggbert

    Eggbert Member

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    I tried to delete but dont know how
     
  4. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    You have to suck it up @Eggbert. The vendor holds all the cards. Just withdraw your notice to move from your rental. This type of delay is quite common.
     
  5. Eggbert

    Eggbert Member

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    Thanks for the advice, It does seem like the purchaser does not have much power...

    It is frustrating because the have changed the date 3 times now and it is costing us.

    Considering they have bought a new house and exchanged they would need to meet my terms, or they could risk losing their deposit on their new wouldn't they?
     
  6. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    Your terms (as stated in your original post) carry no legal weight. You deal is probably not going to fall through.
     
  7. Eggbert

    Eggbert Member

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    I do understand that but we can serve them a notice to complete if they do not accept the 2 weeks rent + additional moving cost?
     
  8. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    If you give them notice to complete they may just terminate the contract and just return your deposit,

    What does your lawyer say?
     
  9. Lil Skater

    Lil Skater Well-Known Member Business Member

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    Has your rental been advertised yet? How much notice do you have to give?

    I'd just withdraw your NTV (if it hasn't been advertised/a new tenant is signed up) and then give notice only a week before settlement or once it's gone through.
     
  10. Eggbert

    Eggbert Member

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    I was worried about this but they have put a deposit down on a flat. They need me to complete or they risk losing their deposit or other expenses on the property they are buying.

    Lawyers are saying its in our contract that we can claim rental loss and other expenses due to the settlement date changing.

    I am a bit worried of rocking the boat but I also dont want the date to keep changing for the 4th time. We are moving to a friends house now until this settles as our rental place has been advertised..
     
    Last edited: 16th Jun, 2016
  11. dabbler

    dabbler Well-Known Member

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    You can do only one thing, issue a notice to complete if in NSW, and say you may cancel contract if vendor won't compensate for any further delays 9give them your reasons via your solicitor), that is assuming they won't easily find another buyer at your price, in which case you just go along for the ride.

    The vendor holds the cards, but if you know they need your money, then you can see all the cards they are holding ! this is where having a good solicitor with experience comes into play, they will know exactly how to play this.
     
    Eggbert likes this.