This week in the A – Z of Conveyancing, we’ll go through the commonly used terms in relation to conveyancing, looking at the letter N.
Prior to an auction, exchanging the contract or during the cooling-off period, negotiations can be entered into in relation to the property and any agreed changes noted in the Contract for Sale. This may be such things as repairs required to be made to the property, extended settlement dates, etc.
Notice of Rescission
A Notice of Rescission is provided during the cooling-off period and is provided by the purchaser’s representatives to the vendor’s representative, advising that the purchaser has elected to rescind the Contract of Sale. This is usually due to a lack of financial approval or issues raised by further inspections of the purchase property.
Notice to Complete
When a purchaser fails to settle on time a Notice to Complete can be issued by the vendors which gives the purchaser 14 days to complete the settlement. Penalty interest and the vendor’s legal fees to action the Notice to Complete will be charged and are payable on settlement. Should settlement not occur at the expiry of the 14 days notice the vendor has the right to retain the deposit paid by the purchaser and to rescind the Contract.
The purchaser also has the right to serve a Notice to Complete on the vendor should the vendor fail to settle on time. If the vendor exceeds the fourteen days, the purchaser may rescind the contract and the deposit be returned to them.
For more information on the A – Z of Conveyancing check out our other posts:
The Letter A: Adjustments, Amendments, Auctions
The Letter B: Breach, Broker, Building Contract, By-Laws
The Letter F: Final Inspection, Finance, Fittings & Fixtures
The Letter G: Grants, Guarantee/Guarantor, Goods & Services Tax
The Letter H: Holding Deposit, Home Loan
The Letter I: Inclusions, Inspection Reports, Insurance
The Letter J&K: Joint Tenants, Keys
The Letter M: Mortgage, Mortgagor, Mortgagee.