What happens if settlement is delayed by bank? There are several reasons why settlement might be delayed by banks. It could be because the bank’s administration department is making mistakes or there is simply not enough time for the process. In either case, you can seek assistance from AFCA. Here are some tips to help you deal with a delay in settlement. The first step is to contact the lender. Ask for an explanation of the delay. If the bank fails to provide an explanation, you can file a complaint with the Australian Financial Complaints Authority (AFCA).
Another reason why settlement may be delayed is due to the seller’s pending mortgage. The seller may be waiting for the bank to discharge the mortgage, and this can delay the process. Another common reason is delayed paperwork. In the meantime, the lender may be dealing with a high volume of home loan applications and may be processing the paperwork slowly. In either case, both parties have the right to cancel the deal. However, it’s best to take legal advice if settlement is delayed by the bank.
Another reason for settlement to be delayed by the bank is unexpected adjustments in the settlement figures. This can result in a shortfall for the buyer at settlement. This can be between $1,000 and $5,000. If settlement is delayed, the buyer may be ineligible to complete the paperwork for stamp duty and Transfer of Land, which require funds. In this case, a conveyancing solicitor can help the buyer complete the necessary paperwork on time.
