Buying NSW property as PPOR with tenants

[gw83]

Hi,

My partner and I are looking at buying a property to be our PPOR and it has tenants in it. The property is in Sydney, NSW.

The tenants have signed a lease which started in January 2012 & ends in 5 months time.

If we sign the contract with a "vacant possession" clause in the contract, do the tenants have to move out or can we not break the lease?

If we can force the tenants to move out, I assume this would happen some time between the start and end of the settlement period (6 weeks or so)?

Thanks!

 

[Terryw]

Hi,

My partner and I are looking at buying a property to be our PPOR and it has tenants in it. The property is in Sydney, NSW.

The tenants have signed a lease which started in January 2012 & ends in 5 months time.

If we sign the contract with a "vacant possession" clause in the contract, do the tenants have to move out or can we not break the lease?

If we can force the tenants to move out, I assume this would happen some time between the start and end of the settlement period (6 weeks or so)?

Thanks!

Tenants have a lease for 6 months. New owners must honor any lease in place. If you sign vacant possession then the vendor will have to try and encourage them to leave. Maybe you could put a special condition in the contract. You would want to put the 'problem' into the hands of the vendor.

 

[Anne Parnell]

The Vendor should really try to get them to agree to a termination of lease prior to exchanging contracts.

Anne