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Vendor delaying settlement - Penalties? - Qld

Discussion in 'Legal Issues' started by robboat, 19th Apr, 2016.

  1. robboat

    robboat Well-Known Member

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    Sydney
    I have an unconditional contract on a 3br residential in Qld due for settlement at the end of the month.
    All my side of conveyancing is ready for settlement, finance in place, etc.....
    Vendor has now asked for a 1 month extension to get some "mortgage release documents" signed by their ex-partner.

    My thought is there was ample time to have this happen as the vendor knew it had to be done to complete...

    Q - Is there any penalty interest if the vendor does not settle on the due date?
    Q - Is there any penalty for the vendor at all for the delay?

    Is there any way this could be a mechanism to terminate? I did a lowball offer that was accepted and maybe they are regretting accepting the offer....

    Seems Qld has different practises as in other states the party in default pays.....

    Any helpful insights appreciated.
     
  2. wylie

    wylie Moderator Staff Member

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    I would be asking RPI to answer this. Maybe send a PM?
     
    Bran likes this.
  3. Scott No Mates

    Scott No Mates Well-Known Member

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    Vendor's contract. No penalties for them.
     
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  4. RPI

    RPI Property Lawyer, Town Planner Business Member

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    Time is of the essence
    If they don't settle on that day you can terminate and sue for losses.
    Alternatively you can affirm contract and sue for specific performance

    Losses can be hard to quantify. Litigation is time consuming, expensive and stressful.

    Although no penalties at law, you can always ask them to pay you some money in return for granting extension.
     
    robboat likes this.
  5. Bran

    Bran Well-Known Member

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    My latest IP settlement was delayed by the vendor.

    I had to sign a letter from the bank along the lines that I would not sue the bank for interest that they charge me (Which they said they would) from the time the funds have been allocated for settlement.

    I think RPI phrased it into negotiations that the vendor would be liable for this if it didn't settle by X date.
     
  6. robboat

    robboat Well-Known Member

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    Location:
    Sydney
    Thanks for the replies....
    I have accepted the delay from the vendor and negotiated a few extra dollars to cover some small expenses.
    All due to bank paperwork and issues between the vendor and their ex.......

    See what happens in a few weeks......
    Cheers,