This article is for general information purposes only and reflects the state of information at the time of publication. It is not legal or financial advice. Always seek professional advice tailored to your specific circumstances before making decisions.
Anxiety levels can be very high around the time of a property settlement. Delays can occur for many reasons and may even cost you money. Having an experienced conveyancer on your side gives you the best chance at a successful settlement.
The Tension
Property transactions inherently involve tension, as both parties have their own interests to protect. Sitting between them is a contract and often a couple of banks. The seller might be buying another property at the same time, or the buyer may need to sell their property to proceed. Whatever the circumstances, settlement is a natural time for tensions to surface, and delays can range from inconvenient to catastrophic.
Common Issues
Bliss Conveyancing has extensive experience ensuring smooth transactions. When hiccups occur, they usually fall into one of these categories:
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Payment delays
Banks may have internal processes that slow down the availability of funds required for settlement.
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Documentation errors
Errors discovered during the final checks can delay settlement from a few hours to several weeks.
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Stacked settlements
Selling one property while buying another increases the risk of delays and requires careful sequencing.
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Final inspections
If the buyer is not satisfied with the pre-settlement inspection, delays or cancellations can occur. Sellers should maintain the property as close as possible to its initial condition.
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Valuations
If a property is valued lower than the contract price, buyers and sellers must quickly decide whether to renegotiate or adjust financing.
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Tenants
Delays can arise if tenants are not vacated on time or refuse to leave, sometimes requiring months to resolve.
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Destruction of the property
Rare events like natural disasters can impact settlement. Contracts specify who bears the risk, and insurance may be needed until settlement.
Consequences
The consequences of a delay vary depending on fault, state laws, and contract type. Using a standard contract, typical outcomes are:
Delay By Vendor |
Delay By Purchaser |
| Purchaser can issue a “Notice To Complete” and terminate if settlement does not occur within 14 days. | Vendor can charge penalty interest, issue a “Notice To Complete,” and terminate if settlement does not occur within 14 days. |
Note: This is a high-level guide. Always seek advice from a qualified professional regarding your exact rights and responsibilities under your contract.
Dealing With Delays
Delays do not have to result in disputes or financial penalties. Experienced conveyancers can liaise with all parties to keep matters moving. Effective actions include:
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Organisation
Ensure documents are signed and returned promptly.
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Funding
Meet all bank requirements as early as possible.
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Communicating
Keep all parties and advisers informed well in advance of any potential delay.
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Good Manners
Requesting short extensions is common. Cooperative behaviour influences how others respond when you request an extension.
The Bliss Conveyancing team is here to support you throughout your transaction, providing expert advice and guidance to ensure your property journey runs smoothly.
