In this week’s Conveyancing Q&A, Hilary Jenkins covers issues relating to long settlements.
I am negotiating on a property where the vendor is asking for a long settlement (12 months) for selling at below market value. I don’t mind the long
settlement but anything can happen in the next 12 months that can significantly change the deal for me. What are some of the risks for a buyer
when there is a long settlement?
Although there are vendor warranties in the Agreement that the property and chattels should be in the same condition as when the Agreement was signed,
a long-term settlement does have added risk that there could be damage caused while the current owner is living in the property for an extended period
which can create problems at settlement.
In the current financial climate, it is very important to be sure any loan approval will not expire before settlement and you should ensure you register
a caveat to protect your interest in the property and look to have the deposit held until settlement.
Disclaimer – The answer provided above is informational and should not be relied upon as legal advice. For personalised legal advice, please feel free to contact Lifestyle Legal Services Limited or your professional legal advisor directly.
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