It’s not uncommon to approach settlement day having removalists booked and other plans in place and all of a sudden, settlement is delayed.  A variety of factors may hold settlement up including delays with banks, documents or the availability of funds.  So what do you do you will effectively be homeless if settlement isn’t effected on time?

There is a term in the various Contracts of Sale that allows the buyer to take early possession of the property, that is, move into the property prior to the contract settling.  Obviously there are safeguards in place that protect the seller in these instances so the buyer must keep in mind when they request early possession:

1. The buyer must maintain the property in substantially its condition at the date of possession with fair ‘wear and tear’ excepted;
2. Entry into possession is under a licence personal to the buyer revocable at any time and does not create a relationship of Landlord and Tenant or waive the buyer’s rights under the contract;
3. The Buyer must insure the property to the seller’s satisfaction;
4. The buyer indemnifies the seller against any expense or damages incurred by the seller as a result of the buyer’s possession of the property; and
5. The buyer accepts the property in the condition it is in at the date of possession.

It may be also be requested by the seller, that all adjustments for settlements be set at the date possession takes place.  This primarily concerns Council and Body Corporate levies.  The seller may also request a copy of the buyer’s certificate of currency issued by their insurance company.

So if settlement day has arrived and you need possession of the property regardless of whether settlement is effected or not, ask your legal representative to request early possession.  The granting of early possession is completely at the discretion of the seller however, if you do not ask, you may find yourself in an accommodation and logistical predicament.