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Default
33 INTEREST
Interest at a rate of 2% per annum plus the rate for the time being fixed by section 2 of the Penalty Interest Rates Act 1983 is
payable at settlement on any money owing under the contract during the period of default, without affecting any other rights of the
offended party.
34 DEFAULT NOTICE
34.1 A party is not entitled to exercise any rights arising from the other party’s default, other than the right to receive intere st
and the right to sue for money owing, until the other party is given and fails to comply with a written default notice.
34.2 The default notice must:
(a) specify the particulars of the default; and
(b) state that it is the offended party’s intention to exercise the rights arising from the default unless, within 14 days
of the notice being given -
(i) the default is remedied; and
(ii) the reasonable costs incurred as a result of the default and any interest payable are paid.
35 DEFAULT NOT REMEDIED
35.1 All unpaid money under the contract becomes immediately payable to the vendor if the default has been made by the
purchaser and is not remedied and the costs and interest are not paid.
35.2 The contract immediately ends if:
(a) the default notice also states that unless the default is remedied and the reasonable costs and interest are paid,
the contract will be ended in accordance with this general condition; and
(b) the default is not remedied and the reasonable costs and interest are not paid by the end of the period of the
default notice.
35.3 If the contract ends by a default notice given by the purchaser:
(a) the purchaser must be repaid any money paid under the contract and be paid any interest and reasonable costs
payable under the contract; and
(b) all those amounts are a charge on the land until payment; and
(c) the purchaser may also recover any loss otherwise recoverable.
35.4 If the contract ends by a default notice given by the vendor:
(a) the deposit up to 10% of the price is forfeited to the vendor as the vendor’s absolute property, whether the deposit
has been paid or not; and
(b) the vendor is entitled to possession of the property; and
(c) in addition to any other remedy, the vendor may within one year of the contract ending either:
(i) retain the property and sue for damages for breach of contract; or
(ii) resell the property in any manner and recover any deficiency in the price on the resale and any resulting
expenses by way of liquidated damages; and
(d) the vendor may retain any part of the price paid until the vendor’s damages have been determined and may apply
that money towards those damages; and
(e) any determination of the vendor’s damages must take into account the amount forfeited to the vendor.
35.5 The ending of the contract does not affect the rights of the offended party as a consequence of the default. |
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