rental income during 6wk setlement period

Viewing 6 posts - 1 through 6 (of 6 total)

benq
Participant
@benq
Join Date: 2010
Post Count: 10
May 5, 2010 - 3:14 am
Hi guys,
can someone quickly clarify to me whether the entitlement of the rental income of a tenanted property is that of the seller or buyer , during the 6 week settlement period where only the 10% deposit has been paid and cooling off period has already expired.
am i correct to assume that until the property is completely paid in full (ie after teh settlement) and hence ownership transfered to the new buyer, then any income derived from rent is still the entitlement of the previous owner?
on this point, what about costs incurred during the settlement period eg a broken stove etc. would the cost of repair be the onus of the previous owner or new buyer?
thanks
ben
Bennytee
Participant
@ten_burner
Join Date: 2006
Post Count: 243
May 5, 2010 - 7:18 am
your assumption is correct until settlement the vendor (seller) keeps all income from the property weather the buyer put down a 10 or 99% deposit
js2
Member
@js2
Join Date: 2003
Post Count: 758
May 5, 2010 - 7:47 am
Hi,
If there is a License to Occupy can the property be then rented by the purchaser similar to the above circumstances but i seek a tenant to put in the property. This is Victoria?
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
May 5, 2010 - 10:26 am
benq wrote:
Hi guys,
can someone quickly clarify to me whether the entitlement of the rental income of a tenanted property is that of the seller or buyer , during the 6 week settlement period where only the 10% deposit has been paid and cooling off period has already expired.
am i correct to assume that until the property is completely paid in full (ie after teh settlement) and hence ownership transfered to the new buyer, then any income derived from rent is still the entitlement of the previous owner?
on this point, what about costs incurred during the settlement period eg a broken stove etc. would the cost of repair be the onus of the previous owner or new buyer?
thanks
ben
Unless you agree otherwise, the rent will belong to the vendor. You are also generally buying the property at the condition it is on the date of exchange, so if something happens between then and settlement the vendor would generally be liable.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Scott No Mates
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@scott-no-mates
Join Date: 2005
Post Count: 3,856
May 5, 2010 - 1:40 pm
Jaffasoft wrote:
Hi,
If there is a License to Occupy can the property be then rented by the purchaser similar to the above circumstances but i seek a tenant to put in the property. This is Victoria?
this would be totally dependent upon what is in the occupancy licence – in most instances the occupant will have restrictions with respect of parting with, subletting or assigning of their rights to a third party, to do so may be a breach of the essential clauses of the licence and termination of the licence would be a valid remedy.
js2
Member
@js2
Join Date: 2003
Post Count: 758
May 5, 2010 - 1:51 pm
So could i live at the property or could someone else live there with me?