Hello:
Here in Victoria we have a settlement date on a new PPOR which takes place periously close to Christmas. We would really like to avoid moving over that particular time of the year.
The property is currently empty.
Our initial short settlement had to be pushed out a bit due to delays in getting finance approved. Seems now the mortgage broker and the conveyencers can confirm it will all happen…..but just a little bit later than first agreed.
Someone has suggested that we try and get into the property a few weeks earlier by offering to rent it from the vendor.
Is that an 'odd' suggestion? What are the legalities of such an idea?
Any thoughts would be much appreciated!
B x
It not odd. You can move in "under license" subject to settlement but this needs to be drawn up by your legal people and signed. Bear in mind it is not a lease so you don't have the same entitlements but you still pay rent. It works unless the settlement doesn't go through and then you need to do something else. I would suggest asking your legal person.
Great…thanks for that!
All appears to be confirmed…after initial delays with finance….so settlement was put back a bit…….
Will speak to the legal eagles!
Thanks!
B x
Yeah my Mum done the same thing. I believe she had it written up in the contract that for a certain period before settlement she would rent the property for a certain amount of dollars per week
Phew….vendor is happy to settle earlier….now it is just up to how quickly the bank/conveyencers can get things happening…..*sigh* …if only these things could be done in 24 hours!!!!
B x
Hi Bronte,
It's uncommon but not unusual to rent the property before settlement for the sake of getting early access.
Sometimes no payment is needed, just agreeing to take the property as it is now, and to pay for the rates etc. from now on, plus insure the property.
An experienced property solicitor will be able to help you.
All the best and congrats on the purchase.
– Steve McKnight
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
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