Advice on early possession and penalty interest – WA

Hi,

We are first time buyers. We made and offer for a house and that offer was accepted.

The settlement date was set for 3pm on 7th July 2011. The settlement has been delayed due to the Vendor. We have advised the vendor that we intend to claim the 9% penalty interest which amount to around $122 per day. We may not enforce the penalty interest but it seems the only way to hurry things along.

They offered us ealy possession but we declined. After a week we asked if we could take early possession and be paid the penalty interest up to the date we enter. Our Conveyancer (who is now getting agressive towards us as we are too eager to resolve this problem which means she is getting emails and phone calls she needs to answer) says we have lost the opportunity to take early possession, the early possession offer has no time period attached to accept it?
The 1st Question is: Can we take early posession and claim the penalty interest up to the time we enter the house?

After reading up on penalty interest and the lack of clear information on our Conveyancers part, we are having some doubts that we will get the penalty interest due to us.

Can anyone comment on this?

Thanks,
James