Sign The Contract for Firsthome but Due to Subdivision Certificate Settlement Delay

Lukb09 on 09/04/2021 - 08:44
Last edited 09/04/2021 - 14:59

We exchange the contract in Nov 2020.. while inspecting property agent told us it will be settled in 9 weeks. even their solicitor told us it will take 4-6 weeks then LRS process. it's almost 5+ month nothing happen. after this much wait I contacted council they are saying it's still in progress.. do I need to worried? any suggestion or advise would be helpful

I found one clause:

he vendor shall proceed with all due dispatch to obtain consent of the council to a plan of subdivision substantially in the form attached and thereafter will lodge the subdivision plan at NSW Land Registry Services for registration as a deposited plan. If the subdivision plan has not been registered as a deposited plan within 6 months after the date hereof either party may at any time thereafter, but prior to the subdivision plan being registered as a deposited plan, rescind this agreement by notice in writing given to the other, subject to the requirements of s 66ZS of the Conveyancing Act 1919. In no event shall the vendor be liable for any delay in such lodgement or registration unless it is due to a failure to do all things reasonable to achieve registration.

do vendor can cancel contract after 6 months or ask for more price?

Home & Garden

Comments

  • Mechz on 09/04/2021 - 08:50
    +4

    Probably need to worried.

    • ukb09 on 10/04/2021 - 22:48

      what I need to worried?

  • jimbobaus on 09/04/2021 - 08:52

    As long as your bank is on board with the delays you should be fine.

    We signed for a almost completed home in Dec, was due to be done in Feb.
    Now its looking like early to mid June.
    Bank has been ok about delays so no issues etc

    As long as you still have your approval you should not worry to much. just keep your Bank informed of any delays

    • ukb09 on 10/04/2021 - 22:50

      Thank you.

  • Keplaffintech on 09/04/2021 - 08:59
    +2

    I suggest you ask your solicitor - this is what you paid them thousands of $$$ for.

  • Quantumcat on 09/04/2021 - 09:17

    Are there not penalties for them missing the settlement date?

    • ukb09 on 09/04/2021 - 16:24

      no I don't think so but

      I found one clause in cotnract:
      he vendor shall proceed with all due dispatch to obtain consent of the council to a plan of subdivision substantially in the form attached and thereafter will lodge the subdivision plan at NSW Land Registry Services for registration as a deposited plan. If the subdivision plan has not been registered as a deposited plan within 6 months after the date hereof either party may at any time thereafter, but prior to the subdivision plan being registered as a deposited plan, rescind this agreement by notice in writing given to the other, subject to the requirements of s 66ZS of the Conveyancing Act 1919. In no event shall the vendor be liable for any delay in such lodgement or registration unless it is due to a failure to do all things reasonable to achieve registration.

      do vendor can cancel contract after 6 months or ask for more price?

      • spal on 16/04/2021 - 10:48

        They possibly can rescind the contract, but not ask for more consideration. But, due to substantially higher values, they may use this clause to get out of the contract and resell at a higher price. However, once they do sell at a higher price, you can sue them for the additional money they made. So, I guess that if they are unlikely to follow this path.

        • ukb09 on 16/04/2021 - 12:28
          +1

          Thank you.

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