What happens when a Seller delays settlement?

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In accordance with the 2018 Contract for Sale, if either party is unable or unwilling to complete the contract by the date specified in the contract, then either party shall be entitled to serve the defaulting party with a Notice to Complete.

This Notice will give the defaulting party 14 days to complete the transaction.

Much different to buyers defaulting and being issued a Notice to Complete, if a seller does not complete the transaction by the due date, while the buyer is entitled to issue the seller with a Notice to Complete requiring them to complete the sale within 14 day, they are not entitled to charge the seller default interest.

Even though buyers are not entitled to charge penalty interest to the Vendor for not completing on the completion date, the Vendor is still required to complete the settlement within the 14 days set out in the Notice to Complete.

If the seller has still not completed the sale after the expiry of the Notice to Complete, the buyer is entitled to sue and claim damages.

For further information please don’t hesitate to contact:

Christine Johnsen
Licensed Conveyancer & JP
christine@couttslegal.com.au
02 4607 2105

This blog is merely general and non specific information on the subject matter and is not and should not be considered or relied on as legal advice. Coutts is not responsible for any cost, expense, loss or liability whatsoever in relation to this blog, including all or any reliance on this blog or use or application of this blog by you.