My partner and I have a question in regards to penalty charges.
We are selling a property in WA which was to settle today, but as the buyer only returned the land transfer papers to the settlement agent (Representing both parties) yesterday, settlement has been postponed.
We phoned the agent to find out why it was returned late and advised that we want to charge penalty rates. The agent said it was the buyers fault and that there is a 3 day grace period before we can charge penalty rates. Is this the case?
The agent also said that because they are representing both parties that this might cause some friction.
What if it is the agents fault, can we have these penalty rates deducted from there fees?
Should we phone the buyer and ask them why/if they returned the papers late?
Thanks
Regrow
You are a fool for 5 seconds if you ask a question, but a fool for life if you don’t.
Your solicitor should handle this for you.
It is up to the buyer to sort out any issues with the agent and responsibility for the penalty.
Avoiding friction is the agents concern but hardly your responsibility!
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 9853 year fixed rate – 6.69%
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I think from recent discussion with one of the property agent, it is the industry norm in WA to have 3 days grace period, after 3 days have passed (this actually mean 3 working days) then penalty and interest starts to kick in.
But i can be wrong
Yugi Tjoe
Thanks for the replies.
Regrow
You are a fool for 5 seconds if you ask a question, but a fool for life if you don’t.
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