Hi,
I recently purchased a unit, contracts have been exchanged, settlement is due later this month.
The contract says vacant possession and the tenants have been given notice. However, the tenants have indicated to stay 2 weeks longer, disregarding the notice.
I do not want to accept the tenants being there at settlement but I am unsure how to deal with this.
Can I instruct my solicitor to cancel or delay settlement if the tenants happen to still be there?
What would be the consequences of this action?
What legal rights do I have?
Any other ideas, scenarios?Thanks heaps.
you should be able to delay settlement – if you settle the removal of tenants becomes your problem
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
I totally agree with what Terryw said. Just double check the contract. It should state when the tenants lease expires.
Thanks.
The lease is expired and the settlement date falls after the date the tenants have to vacate the premises. So basically the vendor has done what he needs to do. But as mentioned earlier the tenants have indicated to stay 2 weeks longer. But I refuse to accept settlement if the tenants are still there.
I suspect the vendor just hopes settlement will take place so that the tenants become my problem, which obviously I do not want.
My solicitor mentioned something about issuing a notice to complete should the tenants still be there when I conduct my final inspection.
The Vendor's obligation is to sell with vacant possession. Until vacant possession can be given there is no penalty to you for refusing to settle before the tenants are out.
Thanks all, much appreciated.
@crj
I hope that your scenario is the way to go, I am just not sure about all the legal stuff that is involved.Yep Mr A – crj is spot on – this is why the final inspection of the property is advised the day before settlement in most (if not all ) contracts. IF it is sold as vacant possession, and is not vacant, you do not have to proceed on the day, and there is no penalty to you. THe vendor is the one who has 'breached' the contract. It will be in his/her interest to get them out quick smart. All the best – must be stressful. Cheers.
Get your solicitor to let the vendor or his solicitor know that you will not settle until it is vacant.
If the vendor does get them out in time make sure you do your final inspection – as you never know what could have been done if the vacating tenants aren't happy to leave.You will need to instruct your solicitor to issue a notice to complete however this cannot be done until 14 days after the due date of settlement.
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