simultaneous settlement nightmares
This is I think one of the most stressful events, for the client. Some ways you can try and ease the pain are
- asking the vendor if your removalist can put goods in the house a day or so before settlement. Very many say yes. Some say No, only in garage which means double handling. Then you have to insure the contents. Only works if the vendor to you has moved out prior to settlement.
- asking to rent back for one week on your sale, after settlement. Not clean, especially if the purchaser insists you have a residential tenancy agreement, but very convenient.
- asking for early occupation for a week on your purchase which is fairly common again only works if vendor to you has moved out prior to settlement. Mostly purchasers in this instance pay nominal (2/3 of market rent) plus rates, surprisingly many vendors let purchasers in for no rent for a week but if not settle on time you pay a penalty rent.
- go to a motel for the weekend and pay the removalists to sit there. Always have an overnight bag in case things don't go right, it doesn't settle and you are not allowed in.
At the end of the day, parties just want the transaction to go smoothly with as little hassle to everyone including themselves and are willing to make and take compromises to achieve the end result. But a simultaneous settlement AND A SIMULTANEOUS MOVE (ie moving in and out on the day of settlement) is a thing to be avoided if at all possible. As in Marg's experience, if it is the Vendor to you who has caused the stuff up and the purchaser is sitting in the street and their solicitor is waving around bank cheques but can't settle (usually because the Vendor's discharging mortgagee bank didn't get their act together to get the title deed out of storage and prepare the discharge of mortgage), the vendor will invariably allow the purchaser into early occupation.
Then you have these delightful chains where if one aborts, the whole chain falls over and clients are demanding to camp in your back yard and of course it's the day before Easter, or the day prior to the Christmas break up......
Re your question about the vendor not having vacated - this crops up sometimes and you can understand that the vendor might be also in the process of moving out. Sometimes it's an issue. By just walking through the property you can tell if they are substantially moved or not intending to move. If concerned (and if you are entitled to vacant possession) simply tell your solicitor to settle your sale, and delay the settlement of the purchase until you know the Vendor is moved out. Happens now and then. Settlement simply gets re-scheduled to later that day, or the next day. I prefer to line up settlements for mid morning say 11.am - lets you come back in the afternoon for a second go. And as they have breached the contract by not providing vacant possession they can pay for double removalist handling and storage fees... Usually they move out real quick. Only problem is where you have a portability loan and your discharging mortgagee won't settle the sale without transferring the loan to fresh security. Seems that these types of loans are fewer and fewer though.
