With Christmas just around the corner, we thought it would be timely to discuss the clauses in the REIQ Contract that deal with Settlement due dates. It is particularly important around Christmas as both buyers and sellers are eager to complete their transactions before the holiday period.
The REIQ contracts stipulates the days which fall between the 27th December and the 31 December (inclusive) i.e. between Christmas and New Years are treated as a public holiday. Using this year as an example, if a condition or Settlement falls due on say the 27th December 2018, it would be pushed over to the 2 January 2019 being the next available business day after the 31st December 2018.
Usually this period means that there is a back log of critical dates and settlements all due first day back in the New Year. Practically speaking, all the work to prepare for settlement needs to be finalised by your financier and conveyancer prior to Christmas, to ensure settlement occurs in the New Year.
We recommend that you negotiate for the contract dates to fall a couple of days after the Christmas/New Year period and not the first day back. This will ensure that all parties are in a position to settle and your transaction concludes smoothly.
If you would like further information or any assistance with your conveyance, please don’t hesitate to contact us.