I have just purchased an apartment in WA. However the seller has deferred settlement now for 3 days. As far as i understand there is a three business day grace period, and after which i am entitled can claim penalties from the seller.
My questions are: is my knowledge correct (ie i can claim penalties)? if so, what process do i follow to claim them? do i need to engage someone besides my settlement agent, or will they do this for me? how much effort is it to claim vs how much would i receive from them?
TIA,
RI am not really sure about laws in WA, but in general, you cannot claim anything unless you have suffered a loss as a consequence of the delay. For example, you have your tenants to move in organised but cannot let them in and you have to compensate them etc or extra legal fees that you had to pay as a consequences of the dealy. If there is no loss suffered by you, what are you going to base your claims on?
This is just an opinion, not advice.
The penalties should be listed in your Contract of sale.
Terryw
Discover Home Loans
Parramatta
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You just need to ask your settlement agent to charge the penalties – very easy and no big deal. If the seller has been good to you and done all the right things then it is usually courteous to let it slide (hasn’t cost you anything after all).
http://www.megapropertygroup.comINVESTMENT SALES * RENTAL SOLUTIONS * STRATA MANAGEMENT
Have you asked them why the are delaying settlement? I would, on one hand, be approaching their solicitor and getting accurate information on why they are delaying, and as “politely” as possible state that you are eager to complete the sale, and would like a confirmed date of completion. On the other hand I would be doing my due deligence on whats possible as far as penalties are concerned, and once that next deadline is passed, slap them with penalties.
very easy and no big deal.Not always.
We settled on a property last April and the disgusting vendors dumped and refused to remove their busted up 20 ft demountable, leaving it in the front of one of the industrial units where they had “apparently cut a deal” with the inherited tenant….do a reno job on the demountable in exchange for not paying the rent for the previous 6 months etc when they owned the property.
We asked for the demountable to be removed ASAP and no later than two weeks after settlement as it is an eyesore and on laydown area that isn’t allocated to the tenant. Vendors wrote and signed a letter agreeing to remove the demountable within 2 weeks after settlement. My sett. agent said that was sufficient and we could proceed. Their sett. agent said they had fulfilled their side of the contract and if we didn’t settle they’d charge us penalties for delays !!!! Nice, I asked what my ‘stick’ was in this situation….that is, they don’t do what they say and I can do what ?? I asked for $ 1,500.00 to be withheld from settlement for the cost of a truck and hiab to remove said demountable if the 2 week promise fell over…..no can do apparently. Why not I asked ?? Cannot was the answer. @#$%^&&* was my reply…..as I knew what was going to happen.
Sett. agent, and their high powered solicitor were pathetic, and to this day (10 months later) it’s still there. When I was last in the country, I called her up to let her know…..she was shocked, concerned, horrified, “Oh that’s not right / fair”…….yeah, well wacko, that didn’t help at all. No big stick, no action.
Now the bin and truck guys are moving in, I see a pleasant ending to this quick smart.
If I have a choice between word waffling agents and solicitors sprouting about laws and regs, vs truck and bobcat operators, give me the latter any day.
We’ve found with ruthless adversaries, no stick…..no power.
Speak softly and carry a big stick.
Trick is, make sure the big stick is in the initial contract terms…..don’t go in pussy footing around with the Vendor.
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