Unusual request? access to house before settlement date

[NSWinvester]

Hi everyone,

When I purchased a property the tenancy agreement for the current tenant was ending in 2 to 3 weeks time and settlement is in 6 weeks time. This leaves the property vacant for 3 to 4 weeks.

Has anyone tried to get access to a property prior to settlement date to do repairs and renovations? this way I have no vacancy periods.

Also if I did manage to get them to give me access and i renovate the house and they decide not to sell... is this a possibility? I brought this property at auction as well.

thank you in advance.

 

[Jamie M]

Hi NSWinvester

Yep, I've done it with an IP before.

We made it a condition of the offer - that we were granted access to the property after exchange/before settlement to carry out renovations.

The condition was accepted and we spent a month in the property renovating. On the day of settlement, the tenants moved in and the unit was worth $40k more

There are risks with this strategy - which you should discuss with your solicitor/conveyancer.

Cheers

Jamie

 

[Perp]

When I purchased a property the tenancy agreement for the current tenant was ending in 2 to 3 weeks time and settlement is in 6 weeks time. This leaves the property vacant for 3 to 4 weeks.

Has anyone tried to get access to a property prior to settlement date to do repairs and renovations? this way I have no vacancy periods.

Also if I did manage to get them to give me access and i renovate the house and they decide not to sell... is this a possibility? I brought this property at auction as well.

As you've bought at auction, you have zero negotiating leverage. You can ask for pre-settlement access, but the vendor has no incentive to do so, and plenty of disincentives. They may, however, agree to bring settlement forward, if you want to get started sooner, and if your lender and solicitor can achieve earlier settlement. (I know you're trying to get the renovations done on the vendor's dollar, but you'd be exceedingly fortunate if that's possible.)

If they do agree to early access, then along with the special condition granting access, you should have your solicitor insert a clause specifying your liquidated damages should you spend money on renovating and the vendor subsequently fails to complete the contract.

Your solicitor would almost certainly give you this advice - have you spoken to them?

 

[craigb]

yes we gained access and quickly made it fit for habitation. perhaps offer some rent for this oppertunity .

 

[ipinvestor]

Yes, We did renovation for 2 of our IPs prior to settlement.

 

[NSWinvester]

As you've bought at auction, you have zero negotiating leverage. You can ask for pre-settlement access, but the vendor has no incentive to do so, and plenty of disincentives. They may, however, agree to bring settlement forward, if you want to get started sooner, and if your lender and solicitor can achieve earlier settlement. (I know you're trying to get the renovations done on the vendor's dollar, but you'd be exceedingly fortunate if that's possible.)

If they do agree to early access, then along with the special condition granting access, you should have your solicitor insert a clause specifying your liquidated damages should you spend money on renovating and the vendor subsequently fails to complete the contract.

Your solicitor would almost certainly give you this advice - have you spoken to them?

This really helps clear things up, I haven't yet had the opportunity to speak to my solicitor as I just received word that the loan was approved on Friday morning (very relieved).

What I'll do 1st thing Monday morning is speak to my solicitor and let him advise me on how to best approach this. Also I'll even talk to the Real Estate agent personally as we are on good terms and see what he can do or what I can do for him/vendor? to get early access.

Just can't contain the excitement, just wanna get in there and do some work!

 

[buster]

Yes, with a little negotiation and once by paying rent.

 

[wobbycarly]

Tried it once. Was agreed by the vendor during verbal negotiations, but his solicitor wouldn't allow it in the contract.