Hi,
We have purchased a block of land in May and the settlement date has been delayed three times from October 2009 to January 2010 to May 2010.
If settlement doesn't take place 12 months after signing we can pull out
Now we have been advised that they cannot guarantee that settlement will take place in May, probably 2nd half 2010.
The thing is that we are weeks away of signing our building contract.
The builder has advised us that there will be a price rise soon and we want to sign before the price rise but now we cannot give him a settlement date.
This leaves us 2 options:
- Sign after the price rise once a settlement date has been given, this will set us back a minimum of $5000
-Sign before the price rise and hope that settlement will take place 6 months after signing, if the land hasn't settled by then it will cost us 0.5% of the building cost per month, in our case that will be $ 1250 per month.
Can we take any legal action?We shouldn't have to bear the extra costs because the land isn't ready.
We don't want to pull out because we want to build on that block and as you all know, one you've decided to build, you want to move forward.
Just wondering what others have done in this situation, i'm pretty sure this happens a lot.
Danny