Hi,
Could someone please tell me what the procedure is for having 'the right to early access ' is? (before settlement)If i want to buy a property with say, 60 or 90 day settlement.
And after building and pest inspections and finance is passed and approved.
And if i accept responsability for any damage ( take out early insurance ).
The vendor would have to be willing to accept this condition. ( If they want to sell their house……)
Assuming the house is vacant anyway.
I would want to do this for the purpose of inexpensive clean ups and renevations.
If the vendor agrees to this,
Would the agent draw this condition up and include it in the contract for me to show my solicitor and sign?
Or do i need my solicitor to prepare something?
Or do i request the vendor produces something for me to sign?
Some people say, what if you spend money on the property and the sale falls through.
But how could it?,
If all proff inspections are done and everything is approved and signed, aren't we locked into an agreement that must go through.
Any comments or advice appreciated.
Thanks,
Frosty.
Hi Frosty
Agents can't give legal advice, so do not get them to add clauses. Check with your solicitor.
Settlements do fall over sometimes. Various unexpected things can and do happen such as major accidents etc where you can't think about continuing. Vendor may also just refuse to settle and then you may have to take legal action which could take months.
Also another possibility is if you or the vendor is sued. There was a case in NSW a few years ago Black v Garnett (from memory) where some exchanged contracts on a property. The vendor was then sued and a writ (due to a debt) was lodged on the title to the property on the day of settlement just after the purchaser's solicitor did their final checks. Because the writ was registered first the vendor did not have clear title and the transfer could not be made. The property sale didn't go thru.
Not sure what happened after that, but the vendor would have had their property forceably sold and the proceeds taken to satify their debt. The purchaser could have sued the vendor, but they would probably have been without any equtiy and going bankrupt.This could have been prevented by loding a caveat as soon as you exchange contracts. That way you should have priority over subsequent writs etc.
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
Here is the correct details:
Black v Garnock (2007) HCA
http://www.hcourt.gov.au/registry/matters/JanFeb07/Black-Garnock.pdfTerryw | 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
Thanks Terryw,
I guess if you wanted to take the risk,
You could do only labour intensive work.
That way you only risk losing your time which is still money,
But, at least your not risking thousands of dollars worth of materialistic things.
Out of all property sales, i'm not sure how many people do this and then run into trouble.
But i guess it can happen.
Thanks.
FrostyHi Frosty
To answer your question, get your solicitor to draw up the early access clause. That way you get what you want. The most open ended clause is to the effect of "the vendor allows the purchaser access to the property prior to settlement for the purposes of renovation". That clause gives you a lot of latitude. If the vendor has a problem with that clause, then let them come back with a tighter clause.
Cheers
K
Hi Linar,
Thanks for the response,
I will talk to my solicitor if i go ahead with the property.Frosty
we had early access – don't remember anything special in the documentation though. The owner was happy as the property was vacant and would rather it be looked like it was being occupied
We've bought two places that we had the condition of access before settlement on. We had no problems at all, and got the work done (cleaning, painting, minor repairs) and tenants moving in day after settlement. Cashflow from day one – we love it!
If you don't settle in time you run the risk of vendor benefitting from any work you do, but just need to ensure you DO settle on time!
The document here in SA is called "Licence to Occupy" and all agents know about it, even if they don't promote it.
cheers,
CarlinWe’ve bought two places that we had the condition of access before settlement on. We had no problems at all, and got the work done (cleaning, painting, minor repairs) and tenants moving in day after settlement. Cashflow from day one – we love it!
If you don’t settle in time you run the risk of vendor benefitting from any work you do, but just need to ensure you DO settle on time!
The document here in SA is called “Licence to Occupy” and all agents know about it, even if they don’t promote it.
cheers,Carlin
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