Vendor wants to stay post settlement

[Richa]

Hi. Just spoke the vendor of place we purchased. Settlement is due in 2 months. He's asked to stay for an extra week or 2 after settlement so he can fix up the place he bought. He needs the settlement date to stay as is so he can settle on his new property (same day). I dont mind doing this as he has offered to pay rent. But does this leave me exposed? Is there a better way to structure this? I was thinking reducing the contract price and writing in a clause of allowing him to stay for 2 weeks.

 

[Jamie M]

Can you agree to simply settle two weeks later? That way, you're not paying a mortgage and you don't have to worry about taking him on as a tenant for two weeks.

Cheers

Jamie

 

[Propertunity]

He needs the settlement date to stay as is so he can settle on his new property (same day). I dont mind doing this as he has offered to pay rent. But does this leave me exposed? Is there a better way to structure this?

Ask your solicitor to draw up an agreement so that the vendor can stay on for 2 weeks "under licence". This avoids the need for a lease and a bond under the resi tenancy act (RTA) and has more 'legal weight' and none of the tenant 'protections' offered under the RTA.

 

[Richa]

great...thanks for the advice. Im probably going to decline as he has only offered $400 per week. The interest cost of me financing the property is $90 a day. Does not seem worth it.

 

[smg]

I would also be inclined if this is the case to hold back part of the deposit say $3000 as a bond in case he does damage to the property prior to him vacating the property. I would also do a final inspection on settlement and then again as he leaves to cover the $3000

 

[Macca]

You should tell the vendor this and ask for that much in rent

great...thanks for the advice. Im probably going to decline as he has only offered $400 per week. The interest cost of me financing the property is $90 a day. Does not seem worth it.