As our legal services cover three states (NSW, VIC and QLD), we usually come across a number of legal issues related to the interstate conveyancing which will increase the complexity in dealing with these issues. One of the case scenarios is that the settlement date is around the corner but the client’s finance is not ready as the property is in Victoria that has certain different requirements for providing the finance. If the settlement is delayed, in accordance with the contract, the penalty interests at the annual rate of 12% will apply.
We immediately discussed the urgent issue with the client’s financer and our client who confirmed with us that the settlement funds will be ready within 10 days after the designated settlement date. In order to avoid the additional penalty interests, we called the vendor’s agent and the vendor’s solicitor to explain the situation and confirm that our client is willing and able to settle. Usually, the vendor would disagree to extend the settlement date without charging the penalty interests, especially for the off-the-plan contract which specifically provides that any delay in settlement will give rise