If you are buying or selling a property that has a tenant in it, there are a number of things that you need to be mindful of.
Buying or Selling a Property with a Tenant in Place
Firstly, if the tenant is to remain in the property, then this must be noted on the Offer and Acceptance Contract. Failure to do so means that:
- Technically the buyer is entitled to vacant possession of the property, which could result in a delay in settlement.
- If settlement is delayed and you are the seller, it may result in the buyer charging you penalty interest for late settlement, until such time as you can provide vacant possession. It may also give rights to the buyer to terminate the Contract.
- As a buyer, possession of the property may not be available to you on the settlement date. Whilst there are remedies in place (as described above) this situation can cause undue stress, additional financial costs (such as the need for temporary accommodation), as well as inconvenience.
As your settlement agent we will ensure that copies of the lease agreement, property condition report, bond information and rent information is disbursed to the appropriate party. We will attend to adjustment of the rent (if required) as well as assist with the transfer of the bond.
Additional information, including standard forms, can be found at the Department of Commerce website.