The process of buying a home can be stressful however, it’s worth it when you finally have keys for your brand new house. Settlement is the procedure of transferring the ownership of a home from the owner to the purchaser. Property settlement lawyers in Central Coast can help you prevent delays in your property settlement. You can always visit solicitors Dublin website
What causes settlement delays?
There are a variety of reasons why the settlement of your home could be delayed:
- Issues with inspection: while you would have conducted an inspection of the property prior to purchase, you could encounter issues that need to be rectified at the time of your final inspection, prior to the date of settlement.
- Problems with selling your existing property: if you already have a house that needs to be sold prior to moving into your new house and the settlement of your new home could be delayed if there hasn’t been a sale of the previous property.
- Errors or delays by the lender: sometimes, if you didn’t submit documentation to the lender in time, your settlement could be delayed. The lender can make mistakes also, or experience lengthy waiting times for home loan approval.
- Late legal documents: delays can occur when your conveyancer doesn’t have your legal documents in time, or if mistakes have been committed.
- Issues with Sellers: delayed settlement can be due to sellers if they didn’t vacate the property on time or if they have a tenant who lives there.
- There is no pre-approval/your mortgage application isn’t approved: if you haven’t found the appropriate finance for your house, settlement could be delayed.
What Are Your Options For The Delay In Settlement?
The results of a home settlement which has been delayed will depend on the party who has been a hindrance to the process.
If you’re the one who is causing the delay in settlement, you may be required to pay the bill regardless of whether you were the cause of the delays. However, you may be eligible for compensation in the event that your lender doesn’t offer a reason that is acceptable to justify their delays.
If you’re not able to settle by the date you agreed to or time frame, the seller can charge you a penalty interest rate for each day the settlement is delayed, if they determine they aren’t able to deal with delays. Taking advice from the best family lawyers Central Coast can help you avoid all this hassle.
The seller might also send you a Notification to Complete and typically grants you an additional 14 days to resolve any issues that hinder you from making a payment.
If you aren’t able to settle on the new day, your seller may cancel the contract and retain the deposit to pay for the expenses.
The same applies in the event that the seller is hindering from settling on time. A majority of contracts for sale of property will state that buyers can issue a Notice to Completion to the seller should they delay the settlement. In this situation the buyer is able to keep their deposit, and also terminate the contract.
It’s important to remember that in certain states buyers aren’t allowed to demand penalty interest from sellers.
It’s recommended to consult a property settlement lawyer’s Central Coast if the settlement has been delayed, so you can be sure that your interests are taken care of.
Conclusion
When delays occur, and both parties are able to resolve the issue, it will help you save time, stress and money by avoiding these delays in the first instance. Here are some tips to avoid delays in settlement:
- Find out your lender’s anticipated processing time: find out when you can anticipate your mortgage application to be evaluated so you can get a clear idea of whether your payment will be delayed or not.
- Be organized and be able to inform: Attend all scheduled appointments on time and answer questions from all parties in a timely manner. Be sure to keep your mortgage broker updated and make any inquiries prior to the end of the settlement process If you can.
- Pre-approve your home loan and then apply for the loan swiftly after settlement: get pre-approved for a home loan prior to buying the house, and then apply for the home loan as soon as you have signed the contract. This will help to keep the process of settlement in line with the schedule
- Be attentive to every detail: check over the contract of transfer, sale and bank papers very attentively to avoid any unwanted delays.