What happens when you can't make settlement date?

Discussion in 'The Buying & Selling Process' started by youfoundtheplot, 6th Dec, 2017.

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  1. youfoundtheplot

    youfoundtheplot Active Member

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    Settlement is next week and i am still waiting for the banks to receive the loan documents.

    What are the issues that i will face?
     
  2. D.T.

    D.T. Specialist Property Manager Business Member

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    Really depends on which state, and exactly how late to settlement you are.

    In most states you could be up for a penalty fee per day that you're late by. Check your purchase contract or with your Conveyancer / Soli for details of when this kicks in and how much it is.

    In SA you can probably drag them along a bit before they issue a Notice to Complete then you face penalty interest per day that it's not settled.

    Whereas in Queensland missing settlement can be fatal! :p
     
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  3. youfoundtheplot

    youfoundtheplot Active Member

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    Purchase is in Victoria
     
  4. Perthguy

    Perthguy Well-Known Member

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    Possibly penalty interest. You need to be following up with the bank regularly. Once you have a date, your Solicitor needs to let the sellers solicitor know that settlement will be on x date.
     
  5. youfoundtheplot

    youfoundtheplot Active Member

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    Can the vendor decide to cancel the contract and keep the deposit?
     
  6. D.T.

    D.T. Specialist Property Manager Business Member

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    Not in Victoria

    But @KateAshmor might be able to be more specific?

    What has your conveyancer / soli said?
     
  7. youfoundtheplot

    youfoundtheplot Active Member

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    I will ask them about it today, they have not mentioned anything to me as of yet
     
  8. Terry_w

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

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    They would need to issue the purchaser with a notice to complete and tell you that they will be terminating the contract, and keeping your deposit (and more possibly) if you do not settle within 14 days. Generally.
     
  9. KateAshmor

    KateAshmor Victorian Conveyancing Lawyer Business Member

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  10. youfoundtheplot

    youfoundtheplot Active Member

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    @KateAshmor They said that as its my fault I will have to pay penalty charges but to just wait a few more days for the banks to get back to them.

    Settlement is on Tuesday 12/12/17
     
  11. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    I take it that you've signed and posted the documents back to the bank?

    We had an issue with a lender a few weeks ago. Client posted the documents back, a week later the bank was saying they haven't been received and is blaming Australia Post.

    A week away from settlement, I'd consider getting new documents. Sign them and deliver them back to the lender directly if you can. Even if you get onto this now it's only 3 clear business days and odds are it will settle a few days late.
     
  12. youfoundtheplot

    youfoundtheplot Active Member

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    Received the documents on Monday 4/12/17.

    Express posted it back yesterday so hopefully won't get lost

    It took so long to get the documents and application due to the lender!
     
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  13. Terry_w

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

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    They will receive the docs today, so you could settle tomorrow if you really had to.
     
  14. Brady

    Brady Well-Known Member

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    Who is the lender?

    I've seen customer chase the banks for penalty interest if it's charged - when it's the banks fault.
     
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  15. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Okay that's a small relief. They'll likely have the documents today. Hope you kept a record of the tracking number?

    Some lenders will be able to settle on time. Others could be touch and go, but you'll almost certainly settle next week.
     
  16. youfoundtheplot

    youfoundtheplot Active Member

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    The lender is Pepper.

    Took so long due to the fact they wanted to value the property as a commercial loan…broker had to put the valuerer in his place and it all got sorted in the end.

    We had a settlement of 2 months and yet we're still waiting to hear back from Pepper. :(
     
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  17. youfoundtheplot

    youfoundtheplot Active Member

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    Kept the tracking but sadly mail is still sitting at the post office.

    Unless they haven't updated the status?
     
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