What if your Buyer requests to delay the Sales Completion date?
The Sales Completion date is determined by both the Buyer and Seller when they enter into the Option to Purchase (OTP) contract.The date for the Completion of Sales is usually 8 to 12 weeks from the OTP date and this can vary as long as both parties agree to it upfront.
So, what if one party requests to delay the Sales Completion after the OTP has been exercised?This change will have to be handled by the solicitors of both parties and you have the liberty to accept or reject the change request suggested by the Buyer.
In the event that you are in no hurry to complete the sales, then why not accept the change as the other party would have their reasons for such a request? You can request for some level of compensation such as interest or rent settlement via your solicitor.
We have seen a case where the Seller agreed to delay the completion date and that benefited her by preventing her from putting her gain from the property transaction into the stock market right before a major correction.So be nice to people and you could be rewarded in otherways!
Nevertheless, if you have an urgent need to complete the sale, you can decline the change request to prevent disruption to your plans.
When considering the completion date, don’t forget to give sufficient notice to the bank or be prepared to pay a penalty upon your mortgage redemption, if applicable.
By Eileen Tan and Ui Wei Teck, property investors and authors of Enjoying Mid-Life Without Crisis. This tip and dozens more are from their book.