All Topics / Legal & Accounting / Settlement delayed by one day – cost me $1900

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  • Profile photo of BrizzaBrizza
    Participant
    @brizza
    Join Date: 2003
    Post Count: 75
    May 9, 2006 - 3:29 am

    I just purchased a property with finance under a 5 year fixed term. The fixed interest rate for the five year term is determined by what the rate is on the day of settlement.

    Settlement was scheduled to be on the 27/04/06
    Due to a delay from the vendor, settlement occured on the 28/04/06
    My financial institution raised its interest rate 0.25% on the 28/04/06

    If settlement occured on the specified date in the contract, I would’ve not been subject to the interest rate increase.

    Am I able to claim any compensation from the vendor?

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    May 9, 2006 - 6:39 am

    What does your contract say? Probably says the vendor can charge your pentaly interest if you do not settle on time, but not the other way around.

    These days nearly all banks offer a rate lock in facility for fixed loans. If you think the rates are likely to rise before settlement, you can pay a fee and they will hold the rate for you.

    Terryw
    Discover Home Loans
    Parramatta
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    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

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