What are my rights if the settlement is delayed?
The standard contract of sale provides for a 42 day settlement. Most settlements are settled one week earlier. This are done by mutual negotiation and agreement.
Often, the agent will say that they want an early settlement, is this a wise thing to do?
On the surface, it might sound like a brilliant idea. But in reality, it is not possible. It is absolutely not a wise idea. You see, the banks’ solicitors are "faceless" people and they will make it difficult for anyone to settle earlier than the 42 day. Anything less than 42 days, the chances of making mistakes with your paper work are extremely high.
Why is it that the agent says that settlement says within 14 days is possible?
When the agent is interfering with the normal conveyancing process, it is a sign of unprofessionalism or that the agent is in financial problem himself as he is pushing settlement to be early so that he can get his hand on the commission earlier.
Common Delay reasons
The first and common reason for the delay is because of banks' solicitors. They are the faceless "emperors".
When acting for a buyer, the banks will put up a front to give you the best customer experience and will promise you a quick settlement, in reality, the banks’ solicitor will not entertain this idea. They can get away with this as they are "faceless" and by nature, hard to co-operate with.
In the reality is: banks' solicitor will dictate when you can settle and everyone must work around him.
But don't worry, we are always on the phone for them to push for an early settlement.
When acting for a sale matter, the banks are notorious in delaying the discharge. They are slow to work out the final amount that you have to pay them.
What does the law says if the vendor delays settlement?
By rights, the vendor can delay settlement up to 2 weeks. However, if you want to exercise this right, it is courteous to let the purchaser know in advance so that they can be prepared in advance. We suggest that, if you have to delay, use this right but please do not delay it by more than 7 days. If you delay to the last day, it can be dangerous because if any complication arises and you go outside the 14th day, the purchaser can terminate and sue you in court for any loss or damages.
If any delay or likelihood of a delay comes up, will you let us know?
We absolutely will and we will try to find the best solution to resolve any delay matter for you. We work on the philosophy that all parties should have a win-win out come and not a win-loss, or a loss-loss outcome.