Licence to occupy

[Shadow]

Licence to occupy (renting to vendor)

On a property I am negotiating to purchase, the vendors have requested to rent the property for two months from settlement date.

Does anyone have experience with such 'Licence to Occupy' conditions?

Should I arrange Landlords insurance for the two month period and then convert to standard Home & Contents insurance?

I suppose I should also request a sum be set aside as 'bond' until the vendors move out?

Anything else I need to think about?

Cheers,

Shadow.

 

[JIT]

On a property I am negotiating to purchase, the vendors have requested to rent the property for two months from settlement date.

They're not interested in a 2 month longer settlement period?

 

[Collector]

Under licence is common.....

Make sure that some $$ is withheld at settlement to cover the rent for the 2 months and 1 months bond.

It normally happens the other way round - the purchaser moves in under licence.

The solicitors draw up the agreement.


There are risks so I would be getting the insurance (had one a couple of years ago where the seller refused to vacate and did not pay rent during the licence period)

 

[Shadow]

They're not interested in a 2 month longer settlement period?

That would have been my preference and I suggested that alternative, but for reasons that I won't go into here it's not an option for them.