Whilst buying or selling property at any time can be a demanding process, the Christmas period can add a festive twist to proceedings. However, by planning ahead and taking a few simple precautions you can avoid delays in your matter.
In Queensland settlement can theoretically take place at any point in time as agreed between both parties. However, most contracts are constructed around either a 30 day or 14 day settlement period. The longer time period is the most common, as it allows all parties sufficient time to prepare for settlement.
When considering a Settlement date in either December or January, it is important to ask the question: ‘When will I be able to Settle?’.
The simple answer to this question is any day that is defined as a business day under the Contract. Unfortunately, this definition in the standard contract in Queensland excludes public holidays and the days between 27-31 December, meaning that settlements do not ordinarily take place between 25 December and the new year. If your settlement does fall within this time period, it will be moved to the next ‘business day’, meaning your settlement date may take place several weeks after it was scheduled. Further complicating matters, it is not uncommon for special conditions to be incorporated to extend the holiday period further, often until mid-January.
Compounding this, it is increasingly common for transactions to be reliant on funds from another matter, meaning that delays of the sort outlined above can be stressful and costly.
On a related note, there are several circumstances where the Settlement Date might be extended unilaterally by a number of business days. If such options were to be exercised on 24th December, this would postpose settlement until the set number of business days from 31st December.
It is also not uncommon for general practice law firms to close over the holiday period, meaning it can be difficult to keep track of your matter, or obtain any updates as to specific issues, or in the case of a weather event (for example).
As a specialist conveyancing firm, bytherules can provide you with the advice you need, when you need it. We recommend that before entering into a Contract:
- Carefully consider when the matter is to settle.
- Ask if a fixed settlement date might be better than the standard provision of ’30 days from the contract date.
- Consider what impact an extension of settlement might have on any other linked transaction
- Review carefully any special conditions that modify the meaning of ‘business day’.
- Incorporate into your planning the possibility that Settlement may be extended unilaterally, and the impact that would have on those plans.
Importantly, bytherules remains open year-round, meaning that our conveyancers are always available to discuss your matter, answer your questions, and provide the advice you need to get your matter over the line, just in time for Christmas.