A seller can impose penalty interest for a delay in settlement. However, this depends on the state you are buying in. In some states, a seller is legally obligated to complete the transaction on the specified date or risk losing the deposit. You should get legal advice if you suspect a delay in settlement. The key to preventing a delay is to be well-organised. This applies to filing all necessary documents with the government institutions, and applying for a home loan.
A delay in settlement can result from several reasons. The most common reason is late or incorrect documentation. Another common reason is a problem with the property that the buyer finds during the final inspection. In such cases, the vendor is liable for any damages caused by the buyer between the contract date and settlement date. As a buyer, you must scrutinize the contract closely to avoid a delayed settlement. If you aren’t careful, it may result in a cancellation or a sale to another party.
In some instances, the seller will charge the buyer penalty interest. If the buyer doesn’t pay on the agreed date, the seller can issue a Notice to Complete and charge a penalty of 9% p.a. The seller can also terminate the contract and retain the deposit. To avoid the risk of a delay, consider hiring a lawyer to review your contract. The best way to protect your interests is to seek legal advice stylishster.