House for Sale Currently tenanted - options?

[ritchie77]

Hi guys, when looking at properties I often come across the following scenario and more often than not take the conservative option and not follow up with that particular sale but interested to hear other thoughts/opinions:

House for Sale
Currently tenanted
House is a mess and tenants clearly do not care about property

Now above is ok as generally the house will be cheaper than others in the area due to its presentation and perceived work required to bring it up to standard with the area.

My question/concern is:

When/if you buy property how long do you have to remove tenants and what are your rights if they will not/do not leave!! Is it usual 90 day termination notice in the event no lease is present or expired. This relates to NSW and lease is expired. Or is it buyer beware - ie if you can see they are bad tenants you are going to have a headache removing them!

 

[DaveM]

If they are not on a fixed term lease, then 30 days notice to vacate on sale of property.

If in fixed term, they are there for the duration of the fixed term.

 

[neK]

ask for vacant possession?

 

[ritchie77]

Yes this one is Vacant Possession.

Does that basically mean you have the right not to settle until the property is vacant (ie you can exchange whilst tenant is in however you want VP once settled). I understand this one has a 90 day notice already in place so removable - just the hassle and amount of time is off putting given the indications are this tenant is problematic!

 

[neK]

My understanding (however I am not a lawyer), is that vacant possession if the place aint vacant, you don't have to settle.

 

[ritchie77]

Thanks nek, that's how I would see it to....

The 90 day period has lapsed so I guess if I was to exchange I make sure the property is actually vacant possession before settling.... The contract does state vacant possession but I suspect they r having troubles with this tenant...

 

[Xenia IM]

The tenant will only vacate on the appropriate forms in relation to their lease agreement whether it coincides with settlement or not!

 

[WattleIdo]

If they are not on a fixed term lease, then 30 days notice to vacate on sale of property.

30 days from exchange of contract, isn't it.

 

[DaveM]

30 days from exchange of contract, isn't it.

My understanding (I am not a tenancy lawyer) is that the 30 days notice can be given any time after the exchanging of contracts. It is up the vendor to issue said notice via an approved method with allowance for days for delivery.

So if you had a 42 day settlement the vendor could issue the notice anywhere up to day 10 after exchange (30 days + 2 days delivery) to comply with a vacant possession requirement. I fit was a 60/90 day then they would obviously leave tenant in as long as they could then issue 30 days.

Note that as soon as a termination notice is given, the tenant can move as soon as they find another property and do not have to pay rent till the end of the notice period, so in the event of an extended settlement, you would want to defer notice as long as practical.

 

[ritchie77]

Thanks for the info guys....

So you are thinking u need 30 days plus 2 to notify the tenant from exchanging contracts so should give plenty of time on 42 day settlement (well only just enough time!).

In this current scenario, the tenant is off lease however understand the 90 day notice was already issued so the contract was issued as vacant possession. Would I then need to note anything extra on contract or ok given the contract specifies "vacant possession". Acknowledge u guys may not be qualified etc and will speak to solicitor but wanted some informed advice to ensure we did not buy something and end with a tenant that would not move out!!

 

[Big Will]

if it says VP on the contract the vendor must make sure the tenant is out or they have not abided by the contract.

If it was subject to lease then you will have to do the termination yourself but I would engage a property manager to set your expectation and the tenants.