Browse Forums Real Estate 1 Jun 02, 2010 12:51 pm We are buying a unit that is currently tenented. We are having the settlement while the tenant will continue with the lease. (we are renting ourselves and didnt want to break the lease to avoid loosing money). Now, is there anything i need keep in mind/be aware of/ look out for during the settlement? I was told (by my mortgage broker) that i wont even have to be there physically during settlement and that my solicitor will take care of *everything*. Any suggestions, if its a good idea to be present for the settlement or not. I'm asking this because of my lack of knowledge on what the buyer role at settlement. I wasn't sure if should do a pre-settlement inspection of the property (though the tenants will still be there)? Or maybe if we could, a post-settlement entry - just for satisfying our excitement of buying a new home. At the same time we dont want to be a pest to the tenants. What do buyers generally do while buying a property that is tenenated at the time of settlement? Re: Settlement tips/suggestions 2Jun 02, 2010 3:12 pm Hi Guru. You don't need to be there when settlement actually occurs. I do not know of a single instance where the person has actually been there when "the deal is done". (They just pass over cheques and titles - it's not exciting). Your solicitor will seriously take care of it all and give you a call when it's all done. You are entitled to a pre-settlement inspection (usually done in the week prior to settlement). I'd suggest taking the property manager with you and getting them to do a condition report so that you are not liable for damage caused by the tenants when the property was not in your ownership. As far as a post-settlement inspection, you might be pushing your luck with the tenants (if they are nice they might let you, but tenants are hard to get along with sometimes - same as tenants say real estate agents are hard to get along with). Let your property manager know that you would like to go along to any routine inspections that are scheduled between the property settling and the tenants moving out so you can get your fix Re: Settlement tips/suggestions 3Jun 02, 2010 7:56 pm No need to attend settlement. I'd get a condition report done prior to settlement such that responsibility for any outstanding issues can be debated prior to settlement and/or settlement amount adjusted. Also helps to identify pre-existing issues so there are no surprises later on. You'd need to check the tenant agreement with the property manager, but normally the owner can inspect the tenanted property by giving the tenant at least 24 hours notice. Built a Tribeca 44 with the Big M Sales Accept 15/06/09, Contract Signed 24/09/09, Site Start 23/11/09, Slab 11/12/09, Frame 12/01/10, Roof 20/01/10, Lock-up 30/03/10, Fixing 30/04/10, Handover 27/08/10. Re: Settlement tips/suggestions 4Jun 03, 2010 8:53 pm I am not sure where you live, or what the contract states..... but we have just this week listed our house for sale, and we were told that settlement cannot NOT proceed because of anything that is picked up at a pre-settlement inspection and that our house will be sold with a clause that says "in current condition" (or something like that). meaning, if no faults or flaws were picked up and highlighted at time of purchase/signing of contract, then they cannot be picked up and disputed pre-settlement. I guess this means at the time of the sale, you would have had to have some kind of contract or inspection report made and then note any differences prior to settlement. I was only told this on Monday so I really don't know the details and maybe it varies from state to state, and/or maybe I have it all slightly wrong - or maybe she is saying this is what she is writing into our contract - but she did actually say that settlement cannot be held up due to any issues picked up at any pre-inspections. Oh, and agree, you do not need to attend settlement. Banks and solicitors get together and do their thing. Ceebs Re: Settlement tips/suggestions 5Jun 03, 2010 11:13 pm Hi there. We have sold I guess 30 houses and I have attended the settlement on I suppose 8 or 10. The solicitor/conveyencer should have no problem with the settlement on the day- however we did have one interesting experience. We inspected one house just before we bought it and we found that the pergola had been removed. It seemed that the tennant felt that he had put it there at his own expence. We had signed the contract with the usual clauses that meant it was sold with the pergola attached. We stood our ground and insisted on compensation- which we received. We refused to settle before it was sorted. Just check that there is nothing that you think you are buying that the tennant thinks they own I guess is the lesson. Other than that- relax....that's what you are paying for. Cheers, Dennis Just be careful with building stability during construction, that is when the structure may be weakened, refer to your engineering drawings for stability methodology. 1 7224 Thank you so much. This has been very helpful. We definitely wish to settle and get these people out of our life. They are trying to charge us interest on late… 7 14263 Title: Expert Tips for Painting Your Own House: Insights from Brisbane Painting… 0 273 |