We have exchanged contracts today on a IP in NSW, and are now in cooling off period. Property is vacant and we put a special condition in the contract for access between exchange and settlement for carrying out renovations. Vendor (mortgagee in possession) has crossed out the special condition and is apparently worried about liability if someone is injured while working in the unit, and also the possibility that if we don’t settle for some reason and renos are unfinished they would incur expenses in restoring the unit.
We have offered to take out landlords ins policy to cover the liability aspect, and offered to put in writing that we would be responsible for restoring any damage should the latter of their fears eventuate.
The agent has not got back to us yet with their response. Vendor is interstate and any decisions have to go through umpteen sets of hands it seems. Unfortunately we have not been able to speak to our solicitor today as he is sick.
Does anyone have any experience with this situation, and how did you get around it? We have done this once before with a deceased estate IP and the vendor had no problems with early access.
Wake
One of the main concerns a vendor might have in allowing access prior to settlement is as you said, unfinished or dodgy repairs if the deal falls through. The other concern is if they give you access, how do they get rid of you if it goes sour. To get around this you could ask them to prepare a licence, and agree to vacate on a certain day if the deal doesn’t happen.
We just settled on a property where we got a licence agreement. The vendor’s solicitor wanted $200 per week rent, but the vendor said he didn’t want any rent, so we got the place fixed up before we settled and didn’t pay any extra. We painted & put in new carpet, but made sure we didn’t do any structural changes.
Hi Kevin
Thanks for the suggestion, but we were told yesterday the vendor won’t allow access under any circumstances. Getting in early to do the reno was going to fit in with other commitments. Waiting til we settle to reno doesn’t, so unfortunately I think we’ll have to pass. The agent has learnt that next time a purchaser asks for this, he should check with the vendor before giving an answer!!
Regards
WakeI think you have to be careful as well being a buyer with early access and carrying out major reno’s..the vendor could love the work done and call the deal off.. it’s ambigious as to the law in these cases IMO..
Does anyone know more on the legalities of such a deal if either party renegs?
;o)
REDWING
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