One of the most important dates to register in a property sale agreement is the anticipated day when sellers must leave the premises and allow you to move in or take possession of the premises as owner – in other words, the day of the transaction.
However, the process can sometimes create obstacles in your path, causing a delay, although both parties have already signed on the agreed date for handing over the keys.
From the seller waiting for the bank that he releases his mortgage loan and paperwork problems to the buyer who discovers a problem during the final inspection of the property and life obstacles unforeseen events that hinder the reasons that settlement delays can occur are extensive and often stressful.
It is particularly stressful if you are a proactive investor who has chosen a tenant to move into the property, as the delay could have an impact on new tenants.
Fortunately, the buyer has some legal rights if the seller is late settling the day of settlement – while keeping in mind that some problems can not be solved. A buyer must demonstrate a certain level of understanding, depending on the cause of the delay. however, if a late settlement does not suit you, an appeal is available.
What are your rights as a buyer as a buyer?
Your rights as a buyer depend on the state in which you buy, but remember that settlement laws may change and it is always better to team up with a transportation professional or lawyer along the buying process.
Queensland
If you are a buyer in Queensland, you have the right to accept or decline the seller's modified settlement date. You also have the right to bring an action for damages in case of un-agreed delay and to terminate the sales contract, with the option of imposing penalty interest on the seller.
Western Australia
In Washington, buyers must allow a payment period of three business days before they can charge the seller's penalty interest.
New South Wales
On the other hand, in NSW, buyers have the right to issue a notice of completion to the seller, which gives them an additional period of time, usually about two weeks, to settle their purchase. Subsequently, the buyer can terminate the contract and recover his deposit.
Victoria
Unfortunately, a buyer does not have as many legal rights in Victoria. They do not have the right to ask the seller to pay penalty interest, and the buyer can only terminate the contract after a period of 10 days.
Tasmania
The rules protecting buyers in Tasmania are identical to those of NSW in that they can issue a termination notice extending the settlement to approximately 14 days. If the seller does not comply, the buyer has the right to claim the losses incurred due to the delay.
South Australia
In South Africa, the buyer does not have a legal obligation to approve a late settlement of the seller. Changes can only take place if both parties reach an agreement on the new date. The buyer may, with written notice, ask the seller to rectify the delay within three business days. Otherwise, this gives the buyer the right to charge the penalty interest specified in the sales contract.
Northern Territory
Northern Territory purchasers may send a written notice to the seller giving them 10 days in which to pay. If the seller does not follow these instructions, they must repay all financial assets to the buyer, including contractual interest.
Given the diversity of state-to-state dispute settlement laws, it is advisable to team up with a carrier or lawyer who operates in your state. In this way, you will be able to get the most up-to-date advice on buyer rights in your state and also ensure that the settlement process is as simple as possible.
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