There are several reasons why completion can be delayed and is not effected on the contractual date. Some instances of delay include, the buyer not being able to get funds from his lender, and delay caused by the seller being unable to sign the transfer deed.
Late completion is common in chain transactions, where a problem in one link causes a chain reaction and all transactions in the chain are delayed. In most cases, these are just temporary setbacks and are solved. Some practical problems are created for the seller and the buyer who may not be able to move into his new house and may have to go for alternate arrangements. For instance, if there is a delay in the buyer receiving funds from the lender, this is a momentary hitch and completion will ultimately take place.here are several reasons why completion can be delayed and is not effected on the contractual date. Some instances of delay include, the buyer not being able to get funds from his lender, and delay caused by the seller being unable to sign the transfer deed.
To compensate for the loss caused to the aggrieved party, generally a compensation clause is included in the contract. Such provisions are different for residential and commercial conveyancing and must be dealt with differently; while Standard Conditions are applicable for the former, Standard Commercial Property Conditions are applicable for the latter.
Photo courtesy: Doug Kerr
