If it’s been a long time between home sales, you might be asking where to start. That’s where we come in, guiding and advising you along your property journey.
One of the most common questions is about vacant possession. Many are unfamiliar with the term so they aren’t sure what they need to do.
What does vacant possession mean in NSW?
If you sell your home, you need to tell us and the buyer if there will be any roadblocks to buyers getting immediate access to use the property as they want. For example, a buyer might want to renovate, use the land for a different purpose or erect another structure on the site. They can do this usually only when they have ‘vacant possession’.
Vacant possession means no-one is living in the property, whether it’s the owners or renters. The property must be cleared of all possessions like furniture, rubbish or, if you’re selling a farm, old farm equipment that’s damaged and unfit for use (or equipment that is not included in the sale).
To help you and our buyers, if we see anything on the property that needs to be removed before the new owners take possession, we will need to include a special condition in the contract that specifies that the owners must remove those items before both parties can move to settlement. In this condition, we might also specify exactly what items and rubbish must be removed before settlement. One person’s trash is another’s treasure so it’s best to list everything that needs to be removed and a final date so all parties are clear as to what they need to do and by when.
This condition is important. Most contracts are worded such that sellers must provide vacant possession. If items remain that aren’t included in the contract, then the conditions for vacant possession haven’t been met. That would mean you as a seller have broken the contract and the buyer is no longer obliged to purchase the property.
Before we allow settlement to go ahead, we will take the buyer to the property for a final inspection to make sure nothing that shouldn’t be there is left behind.
What if I have a tenant?
If you rent your property, you can still sell it; however, you need to abide by NSW laws as to when and how often you can show the property, the notice you need to give to the tenants and what existing tenancy agreements you need to honour.
For example, if your tenant has a long lease, you and the new owner must allow them to remain in the property. If your tenant has a month-to-month lease, you must give them the appropriate number of days’ notice to leave. If you’ve put your property on the market, your tenant can end the rental agreement by giving you 14 days’ notice in writing.
Both the Residential Tenancies Act 2010 and the Residential Tenancies Regulation 2019 will explain the laws that apply to the sale of a tenanted property.
In cases where a property is tenanted, we make it easy for you and us to maintain a good relationship with your tenants as it will make it easier to agree on access for photography, inspections by potential buyers and set open-for-inspection days.
We always recommend that you speak to your tenants early if you decide to sell so they are prepared and can work with you. If you don’t communicate with sitting tenants, they can make it harder for you to sell your property.
Can I help with your property?
Having moved from Sydney and now based in Gloucester, selling lifestyle and rural properties, homes in town and surrounding townships, with many years of successful property negotiations behind me, I’ve seen it all. If I can help you with any questions you have about property, please give me a call.
