When selling a property, clients often think that the settlement date (which is also known as the completion date) in a Contract for sale of land must be 42 days. The good news is that the time for completion is in fact negotiable.
Examples of when a different completion date may be needed are as follows:
- If you are buying a property and wish to move from your current home to the new home, you may need to negotiate the completion dates so that both settle at the same time.
- You may be selling and moving into a retirement village and your new unit is being renovated, meaning the completion date may need to be adjusted to fit in with the renovation.
- You may need to sell your current property to finance the purchase of another. This may require a completion period of 3-4 months to allow you time to market the property, find a buyer and complete the sale. In this scenario its always dangerous to buy a property before selling the existing one.
- Work may need to be completed or approvals are being obtained.
- The construction of a unit or house may not be completed, or the land is being subdivided.
- You may need to complete within a particular financial year for tax purposes.
Different settlement periods may suit both parties, but you should also consider whether it may deter people from entering into a contract.
The completion date is almost always negotiable.
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