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penalties re settlement

Discussion in 'Accounting, Tax & Legal' started by Bricks & Mortar, 7th Dec, 2006.

  1. Bricks & Mortar

    Bricks & Mortar Member

    Joined:
    4th Dec, 2006
    Posts:
    7
    Location:
    Melbourne, Vic
    If a settlement was arranged for 20th December in NSW and settlement could occur till the New Year say 10th Jan. How would penalities be calculated considering both solicitors would be on annual leave and unable to attend settlement until they return from annual leave.

    Is there any steps other than attempting to arrange an exttension to the settlement date?

    Would delays from the vendors solicitors have any bearing to this?

    thanks in advance
    Timm
     
  2. D&K

    D&K Well-Known Member

    Joined:
    14th Nov, 2005
    Posts:
    206
    Location:
    Canberra
    Hi Timm,

    We've had a slight delay to a settlement before, in mutual interest for when both solicitors could get together, and there was no penalty. You should check with your solicitor what they may be planning. If getting finance, your solicitor may also need to check with the Bank's solicitor also.

    Regards, Dave
     
  3. hiflo

    hiflo Well-Known Member

    Joined:
    3rd Jun, 2006
    Posts:
    68
    Location:
    Sydney, NSW
    Check the special conditions of the Contract.

    Some contracts have provisions for Christmas holidays where if settlement is to occur on that date it is automatically postponed to another date.
     
  4. Bricks & Mortar

    Bricks & Mortar Member

    Joined:
    4th Dec, 2006
    Posts:
    7
    Location:
    Melbourne, Vic
    Thanks,

    I'll check is there is such a provision on the contracts

    I just hoping, if there is a penalty for late settlement, it doesn't include all the time both businesses are shut for Xmas holidays.

    cheers

    Timm