The standard REIWA contract provides that if for any reason attributable to the other party, settlement is not completed within 3 business days after the settlement date, you may demand compensation at the rate of 9% per annum on the balance of the purchase price payable (penalty interest). Penalty interest is calculated from the settlement date to the date upon which settlement is completed and must be paid at settlement.
Your right to compensation is subject to you and your lender (if any) being ready, willing and able to complete settlement on the settlement date. If you are not ready, willing and able to settle on the settlement date, then your right to compensation begins from the date upon which you give written notice to the other party that you are ready, willing and able to complete the settlement.
We will only claim penalty interest on your behalf if we receive your written instructions to do so. We will advise you should there be any delay in settlement.
For more information, read out blog post Penalties for late settlement.