Vendor Late Settlement - and the 12% penalty ??

[Bluekiwi]

Okay so I was 1 day late in being able to settle.
But the Vendor has now been 1 week latter than me.

Due to slackness on there part, getting around to signing the A and I's and sending them back to their solicitor.

As part of the normal S&P can I charge them 12% penalty for that week, how does it work ??

[Tan]

Your lawyer will do it. Give them a call.

[shanecarruthers]

As part of the normal S&P can I charge them 12% penalty for that week, how does it work ??

Basically yes, talk to your solicitor and they can advise you.

[Ivan McIntosh]

You have to be in a position to settle yourself; once you were you should be able to charge away (assuming you didn't move into the place in the meantime, which is a whole different story), but minus some offsets...read 3.13(2). You have the option to charge for temporary accomodation and storage instead if that is better for you.

[Bluekiwi]

You have to be in a position to settle yourself; once you were you should be able to charge away (assuming you didn't move into the place in the meantime, which is a whole different story), but minus some offsets...read 3.13(2). You have the option to charge for temporary accomodation and storage instead if that is better for you.

Okay so the fact the neighbours gave me the keys and my renovation team moved in anyway sort of counters my claim for money from them ?

[Ivan McIntosh]

Okay so the fact the neighbours gave me the keys and my renovation team moved in anyway sort of counters my claim for money from them ?

BK,

Yes, probably, in fact you will end up paying the vendor money calculated on the on-call interest bearing deposit rate that your lawyer would get on the balance of the money you owed.

This is presumng the neighbours were authorised to let you into the property on the vendor's behalf.

Still, you had the property without having to fork any money over or pay any interest to the bank, so you should come out well ahead.

For bed time reading, clause 3.13(3).

[halfempty]

Just be careful in the event of the purchase being a mortgagee sale, as normally the bank will ask for 16% penalty interest and its only going in one direction because they contract out of all guarantees and liabilities.

[TheLiberalLeft]

Did the delay cost you any money?

[Bluekiwi]

BK,

Yes, probably, in fact you will end up paying the vendor money calculated on the on-call interest bearing deposit rate that your lawyer would get on the balance of the money you owed.

This is presumng the neighbours were authorised to let you into the property on the vendor's behalf.

Still, you had the property without having to fork any money over or pay any interest to the bank, so you should come out well ahead.

For bed time reading, clause 3.13(3).

My tradies were all lined up and I had given them keys so I just let them get on with it.
The vendors just dumped the house and headed back to the UK throwing the keys to the next door neighbour and giving the bank the fingers.
I am 100% sure the agent or the vendors dont have a clue I have been in there.

Yes it cost me time TLL and time is money, the time was mostly tossing and turning lack of sleep hoping I hadnt wasted money renovating it if the sale didnt go through and we had to sue them.

So I feel in the mood to sting them for a few dollars as recompense.

[shanecarruthers]

I'd just move on and be happy ... why have more sleepless nights when you have the property now and had access. Put your energy towards something else

[halfempty]

Didn't cost any holding cost but my deposit was held, and it cost me 2 months while they stuffed about with no urgency.

[sparxNZ]

The vendors just dumped the house and headed back to the UK throwing the keys to the next door neighbour and giving the bank the fingers.

If they have shot the gap back to the UK how are you going to sue them?

[Victor Meldrew]

So I feel in the mood to sting them for a few dollars as recompense.

Gorblimey; and my neighbours call me a miserable old codger.

[Ivan McIntosh]

My tradies were all lined up and I had given them keys so I just let them get on with it.
The vendors just dumped the house and headed back to the UK throwing the keys to the next door neighbour and giving the bank the fingers.
I am 100% sure the agent or the vendors dont have a clue I have been in there.

Yes it cost me time TLL and time is money, the time was mostly tossing and turning lack of sleep hoping I hadnt wasted money renovating it if the sale didnt go through and we had to sue them.

So I feel in the mood to sting them for a few dollars as recompense.

Well, you can take the view that getting some pre-settlement access for your tradespeople is not the same as the vendor offering possession because of their default in settling. Up to you really....instruct your lawyer accordingly.

[DaveW]

Is the Possesison date in the S&P contract stated as "the same as Settlement date" (or something similar), or is it a specified date (normally the same date specified as settlement date). A good agent will use the former and will not give you the key until settlement is satisfied. When buying I use the later just in case there is a unexpected delay in settling then I can still proceed with possession but obviously incurring the late settlement charge which I budget for anyway.