Hi everyon
I want to purchase a property that has a tenant in it. Apparently there is no written lease agreement as the tenant is illiterate. I would obviously put the vacant possession clause on the contract for sale but I am not sure what my rights are if settlement happens and the tenants refuse to move out. Could I put a clause in the contract for sale that the house be vacated by the time of the final inspection, and if the tenants are still there, refuse to settle?
The tenants are poor (they are on govt assistance) as well and may claim undue hardship. Would this mean they may never have to vacate the property?
HELP – I don’t want to get stuck with a property I can’t renovate as planned.
Innness
Hi Inness,
This happened to me too, a couple of years ago.
The IP I was purchasing was occupied by the ‘tenants from hell’. They hadn’t paid rent for 6 mths or more, and had pretty much trashed the place. That was why it was being sold. The owner had just given up.[blush2]
No one else wanted it, mainly because it was hard to get past the stench that hit you at the front door, but it looked like a great buy to me [blink]… with new carpet & a paint job it came up looking like new (well nearly). And the smell went to the tip with the old carpet!
Anyway the point is, the vacant possession clause was in my contract (the neighbours were cheering) and the rest was left up to the vendor.
The tenants of course refused to move out, so the Sherrif was called in (NSW). Everything was tossed out (not sure where it went to) and the locks were changed. It all happened before the due date, so I had no problems at all.
I don’t have any knowledge of the process to engage the Sheriff, but it is the vendors responsibility anyway, so you shouldn’t have any dramas [thumbsup2]
Hope it all goes well for you, happy renovating!
Regards,Sharon
Gracetown would be the best option
Yes put the vacant possession clause in there and refuse to settle. (through a solicitor of course)
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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