Whose liable?

[pawprints]

I have just signed a contract on a unit which will be a PPOR for me. I have 90 days settlement.

The unit is currently tenanted, and when my finance goes through, they will be given 65 days notice.

So the current owner will be the one servine the notice etc.

"What if" Scenario - the tenants are told to leave in 65 days, they crack it, leave but trash the place.

Who is liable? Does settlement get delayed as the pre-settlement inspection turnes up holes in the walls etc? Current owner have to fix before settlement occurs?

Or tough, I bought it, it's mine now, I have to fix it?

 

[skater]

I have just signed a contract on a unit which will be a PPOR for me. I have 90 days settlement.

The unit is currently tenanted, and when my finance goes through, they will be given 65 days notice.

So the current owner will be the one servine the notice etc.

"What if" Scenario - the tenants are told to leave in 65 days, they crack it, leave but trash the place.

Who is liable? Does settlement get delayed as the pre-settlement inspection turnes up holes in the walls etc? Current owner have to fix before settlement occurs?

Or tough, I bought it, it's mine now, I have to fix it?

If you have the works "vacant possession" in your contract, then it is up to the existing owner to get rid of the tenants. Do an inspection prior to settlement & if it is not up to scratch, instruct your Solicitor not to settle.

 

[BoatBoy]

Interesting, I thought you had to have insurance cover from the day you sign a contract, but that usually wouldn't cover poor tenants.

What does your solicitor say?

Dave

 

[Pushka]

Surely the 65 days notice only kicks in when you have settlement (and therefore ownership) and not before, unless as Skater has mentioned, you have purchased on the basis of vacant possession.

 

[pawprints]

Yes my offer was subject to Vacant Posession so when my finance approval date is cleared (3rd Nov) and the contract goes unconditional for finance, the tenants will be given their 65 days notice. Settlement was 90 days so that means they are out on about the 6th of Jan, and I take posession on 19th Jan.

Doesn't the building insurance come under the Body Corp. I only have to take out content insurance.

So if I inspect prior to settlement and the place is trashed, I can delay settlement until fixed?

 

[Twitch]

So if I inspect prior to settlement and the place is trashed, I can delay settlement until fixed?

Yes, so ensure you do a pre-settlement inspection.