RE: 3 DAY GRACE PERIOD (SELLERS)
Did you know???
Under the Joint Forms of General Conditions 2018, either the buyer or seller may cause delays to settlement by up to three (3) working days without penalty.
- Many buyers and sellers do not know or understand this, but is has been around a long time and automatically a contractual right built into all contracts in Western Australia for property.
We therefore suggest a flexible back up plan in relation to the settlement date that includes: E.g.
- Arrangements for time off work
- Liaise with access to your new property if applicable and if it is coinciding settlements
We as agents have no control how either party uses their three (3) day grace period.
If all parties exercise consistent and proactive follow-ups via their settlement agent well in advance of settlement, most factors that can cause delays in settlement can be averted.
Most common causes of delay in settlement include:
- Interstate banks, (original documents have to be signed and sent back and forth)
- Banks losing/ misplacing documents, (common, especially with longer settlements)
- Certain banks (some are notorious for being late/slow)
- Mortgage discharge delays
- Settlement agents, planning and organisation,
- Either party having complicated financial affairs, or
- One of the parties not having their financial documents signed and ready on time.
- The buyer not completing the final inspection early enough to satisfy themselves that everything is working, as per the contract. (A good agent will insist on both buyer and seller being present at the final inspection and to have this inspection about a week before settlement giving ample time to complete checks and act on them accordingly).
>>>Please know that whilst we are aware this can be an enormously emotional and stressful time for all parties….
…WE WILL be as proactive as we can within reason and we will be liaising between all parties and we understand and agree that delays in settlement can be enormously inconvenient and stressful, we have no control over the actions of banks and settlement agents or any third parties.
Almost all delays in settlement are due to one party being slow in getting documents in or one of the banks.
We hope you can understand that like you we want your property to settle on time and will be doing our best to make sure that this happens.
- In other words, we’re on your side
Please help us to be as proactive as you can be from your end, we will ask the other party to do the same and will be constantly following up both settlement agents.
For any clarification please feel free to speak with me or your Settlement Agent.
- Thankfully it is hardly every used (3 day grace period) and most of our sales do occur on time.
- Perhaps only 20% of settlements this may apply to.
We thank you for your kind understanding and patience.
- Once again thank you for allowing us to assist you in the process of moving and acting as your agent.
- We look forward to helping you to move on and make this as happy and stress free as possible.