early access long settlement

[Paul j F]

My brother has had an offer made on his house. He's happy with the price but the conditions are unusual. Purchaser wants a 9 month settlement allowing time to sell their home but wants to move in with 30 days. Standard 10% deposit on exchange of contract with additional $300k on moving in + $1k/month in interest on balance owning. Balance (around $165k) when they at settlement in 9 months.

I advised a solicitor not just a conveyancer and a lease agreement as he still owns the property and they will be his tenants.

What issues does he face?

 

[Jake Milne]

A lease agreement is okay. Your brother's conveyancer just has to make sure that he isn't liable for any changes in the condition of the property due to the new owner living there as a tenant.

It's pretty straight forward, and like you've said it's just like having a tenant in place during the settlement period.

 

[jenni_nextplace]

This is happening more and more, its just a bit of a bugger for your brother because he has to wait 9 months for the rest of the cash.

Are there any better buyers out there, a cleaner contract would be nice.

If a buyer offered a contract with those terms personally I would say no. I would rather hold out for standard contract. What has the agent said, can he get you a better offer?