Seller do not want to vacate on Settlement

Hi Everyone,
I am buying a property to settle end of this month, the REA sent me an email asking that the seller keep the keys for one more night after settlement, as they are buying another property to settle on the same day and the seller wants to have some time to move.

I spoke to my solicitor, and she came back with 2 options which I sent to the REA that I am happy with both options.
1- To vacate on the day of settlement
2- To delay settlement for 1 day, and to communicate this in writing between the 2 solicitors.

I had a previous arrangement with the seller to open the property for inspection and arrange for a handyman to quote for some work. It was initially rejected. And then after this request. The REA said that they can allow this to happen if I agree.

I understand from the REA that the seller is angry at the moment and not happy with any of the options, and I am worried that they may do damage to the property. I am confused what action to take.

If I settle and they stay in the property, how do I guarantee that they will vacate the next day?, what will happen if the other settlement collapse?, what if they cause damage while moving?, what if someone hurt himself (e.g. removalist) ? it will become my liability as I am the legal owner?

What should I do on the pre-settlement inspection?, if I find that they did not pack or move part of full of their items from the house, what should I do?

Your responses will be highly appreciated.

Thanks
Ram
 
Listen to your solicitor. I think they are right that you shouldn't settle until you've confirmed via pre-settlement inspection that the property is vacant.
 
I would delay settlement, assuming there are no other ramifications to doing this, ie. can you stay where you are if they don't move out on the day after when they say they will move?
 
I would delay settlement, assuming there are no other ramifications to doing this, ie. can you stay where you are if they don't move out on the day after when they say they will move?

Hi Wylie,
I live in NSW, and the property in QLD, so I am flying on the day to do the pre-settlement inspection, and I am planning to stay in the property for couple of days to arrange for somework to be done.

I am not sure what I should do now.

Thanks
Ram
 
Hi Wylie,
I live in NSW, and the property in QLD, so I am flying on the day to do the pre-settlement inspection, and I am planning to stay in the property for couple of days to arrange for somework to be done.

I am not sure what I should do now.

Thanks
Ram

Where are you buying? I suggest asking someone up here to do the pre-settlement inspection for you, or fly up the day the vendor has confirmed they will definitely be moved out.

I would not settle until they are actually moved out (if they are already saying they will not be moved out on the planned settlement day) and already being difficult vendors.

Edit: Get some better advice than mine though because in Queensland the "time is of the essence" comes into play. If you delay settlement you "could" make it worse for yourself. Make sure your solicitor understands the Queensland rules and implications of you causing a delay in settlement.
 
Hi Wylie,
I live in NSW, and the property in QLD, so I am flying on the day to do the pre-settlement inspection, and I am planning to stay in the property for couple of days to arrange for somework to be done.

I am not sure what I should do now.

Thanks
Ram


Note that there may be severe implications in Qld of not settling on the nominated date if you are the purchaser, no reciprocal punishment to the vendor.
 
I personally wouldn't do it but if you wanted to I'd maybe retain a largish sum at settlement with the strict condition that if they aren't out of the property by 5pm the next day you get to keep that. You still expose yourself to the possibility that their purchase doesn't end up going through and you end up owning a property with people who don't want to move out.
 
Is it possible for the seller to bring forward the settlement date of the property they are purchasing?

It's bad organisation on their part to try and work it like this.
 
Is it possible for the seller to bring forward the settlement date of the property they are purchasing?

It's bad organisation on their part to try and work it like this.

And it's even worse form to get irritable about a situation they've knowingly got themselves into
 
Is it possible for the seller to bring forward the settlement date of the property they are purchasing?

It's bad organisation on their part to try and work it like this.

The Real Estate mentioned that they cannot do this as they need the funds from the sale to pay for the purchase of the other property.

my Question is, what should I do if I go for the pre-settlement inspection and find that they didn't move, or not packing their stuff for moving. Is there any legal action my solicitor can take to guarantee they leave.

I read the contract and it says that the property needs to be vacant on settlement, and this is the sellers responsibility.

Thanks
Ram
 
It's their problem, not yours. You have a contract requiring vacant possession, and you should refuse to settle until it's vacant. They have to either find somewhere else to stay for the night, or agree to postpone a day and arrange concurrent settlement (which should be manageable; happens all the time!).

Either way, this is not your problem.
 
From what I can tell the vendor wants to move houses on the same day as settlement?
poor planning on their part, sounds like someone needs to talk some sense into them, I'm sure that they could put their stuff in a truck overnight and camp out in a motel.

I'm with your solicitor also on this one, but for your sake would hope that the vendor realizes they are the one's holding things up and changes their decision to stay.
 
Listen to your solicitor do not settle whilst they are still in the property. The property must be in the same condition as it was on exchange and is there to protect you. Make it the day later and forego the handyman appointment.
I agree this is not your problem.
You can also hold funds back if things are not done i.e. rubbish left..
This is a legal matter don't deal with them direct
 
Listen to your solicitor do not settle whilst they are still in the property. The property must be in the same condition as it was on exchange and is there to protect you. Make it the day later and forego the handyman appointment.
I agree this is not your problem.
You can also hold funds back if things are not done i.e. rubbish left..
This is a legal matter don't deal with them direct

Thanks Guys,
It is clear to me now, I will go for the pre-settlment inspection, if they already vacated, then all good. if not, then I will inform my solicitor that the place is not vacant, and will take it from there, I will leave it to the solicitor to do the necessary actions.

Thanks
Ram
 
I've had clients in the same situation, wanted to move same day. It's really not enough time. I've had clients speak to the vendor they're buying suggesting they speak with the vendor they're buying from about arranging access to a garage prior to settlement, that way they can start putting personal items into the property before settlement.
 
New_Investor, .....

Any reason why the vendors can't arrange for the removalists to collect all furniture etc on the day of settlement, ... rent a motel room for the night and have removalist deliver to the new address the next day.

I'm sure if they pay extra the removalist will store in their truck until the next day ....this way your settlement can go ahead as planned.

Mystery
 
New_Investor, .....

Any reason why the vendors can't arrange for the removalists to collect all furniture etc on the day of settlement, ... rent a motel room for the night and have removalist deliver to the new address the next day.

I'm sure if they pay extra the removalist will store in their truck until the next day ....this way your settlement can go ahead as planned.

Mystery

Hi Mystery,
I am not really clear on what the vendor wants. They didn't respond after I sent them the solicitor recommendation. They informed my PM to cancel the open house, and denied access to the handyman. So I understand this means No.

My solicitor did not get any verbal or written request. So fingers crossed all will be good on settlement day.

Thanks
Ram
 
New_Investor, ...... It all sounds messy. I really hope all goes well for you on settlement day ...

All the best
Mystery
 
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