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With my first Possession Prior To Settlement they wanted to do renovations, ie put in a new tile floor so part of the agreement stated that any 'works' done would have to be reversed (though in reality new tiles was a winner for me unless they were super ugly)

There are a zillion but your REA should have a pretty good standard Possession Prior to Settlement form for them to sign This should cover them paying for any damage to the property done by them if settlement doesn't go ahead, them being responsible for blah blah I have allowed 2 Possessions...