Time-frames in sale and purchase agreements can be crucial because the timing of one event normally impacts on whether subsequent events can take place (or not!).

We recently read of an example where Sam* had signed up for a house with the settlement date being 60 working days from the date of the agreement. This suited Sam as he had planned to move out of his flat and travel for about 6 weeks anyway. When he got back home he could hop off the plane and into his new house, no worries.

So, Sam gets back into the country 60 days later and makes contact with his lawyer to arrange pick up of the house keys. To his surprise his lawyer says ‘the agreement says settlement is 60 workingdays from the date of signing, that’s another month away, mate’.  Sam now has to hurriedly find alternative accommodation for a month — what a pain, he should have booked a longer holiday!!

The lesson: ‘working days’ and ‘days’ are not the same. Working days excludes weekends and most public holidays so understand exactly how long you have agreed to give when signing a contract.

Another tip — We would generally recommend you allow 10 working days to fulfil the conditions in your contract. It may seem a long time but you never know, delays and complications can sometimes get in your way and if your time-frame is short you’ll know the meaning of stress!

 

About Campbell Hastie

Cam is one half of Auckland based mortgage brokers, The Go 2 Guys.

He makes a living by sharing what he knows about mortgages with people, arranging mortgages for people and then insuring people.

He doesn't claim to know everything about mortgages himself which is why he teamed up with David Mercer — hence the ‘2’ in Go 2 Guys.

He writes posts regularly on his blog and has been told he has an ability to share his knowledge in a simple and sometimes memorable way.

Feel free to comment and ask any questions. Contact Campbell Hastie m: 027 697 7789.

Join me on Google Plus