The summer months are a bustling time for purchasers looking to make a move. With spring being a popular season for listing properties, the real estate market often reaches peak activity in December and January as buyers and sellers rush to finalise settlements.
This timing can be ideal for many. The warmer weather makes moving more manageable, and the holiday season provides purchasers with extra time to pack up and prepare. For families, it’s also an excellent opportunity to settle into a new home before the school year kicks off.
However, navigating property purchases and settlements during the Christmas and New Year period comes with unique challenges. Public holidays and business closures can impact timelines, making it essential to plan ahead and stay organised.
Key Legal Considerations and Timelines
Selling a Property that has been Leased
If you’re selling a tenanted property and need to provide vacant possession, arranging for tenants to vacate during the holiday period can be challenging. We recommend consulting your conveyancer or property solicitor to address any potential tenant-related issues effectively.
Cooling Off Periods
If you’re purchasing a property through a private treaty and not at an auction, if eligible, you typically benefit from a five (5) business day cooling-off period, subject to vendor agreement, from exchange of Contracts. This period allows you to obtain any necessary inspections and obtain unconditional finance approval, if required, it also provides you with an option to withdraw from the purchase, if needed, only forfeiting a 0.25% deposit to the vendor. It’s important to remember that the cooling-off period is calculated in business days, not calendar days.
For example, if a Contract is signed just before Christmas, the cooling-off period may be extended due to the public holidays during this time. While this extension is often advantageous for purchasers, it can be particularly frustrating for sellers waiting for their sale to be locked in.
Property Settlement
From exchange, the completion or settlement date is typically set for 28 calendar days or 42 calendar days, following the exchange of Contracts. The cooling-off period is inclusive of the completion period.
If the settlement date falls within the holiday closure period, this can have a significant impact, so a shorter settlement date can be agreed to if certain conditions are met.
Holiday closures often begin around 20 December and extend into the second or even third week of January, during which settlements may not be able to be finalised. Under normal circumstances, delays in settlement can have financial implications for purchasers. These may include interest charges, based on the purchase price, on the settlement amount for each day of delay along with penalty fees for a rebooking of settlement.
Another thing to consider with Christmas closures is to ensure you book any relevant service providers such as removalists before their closure period to confirm their availability over the holidays.
At Hunter Legal & Conveyancing, our experienced conveyancing and property team is well-versed in managing these challenges. Whether you are a purchaser or a seller, we work diligently to ensure our clients are not disadvantaged by holiday-related delays.
Call us today at 1300 224 828 to discuss your needs and let us let us help you take the next step with confidence.
