Early entry or possession is where a purchaser of a property requests that they be allowed access to the property they are buying before settlement has been completed.
Early entry usually occurs when a purchaser needs sufficient time to move their possessions, or merely to allow them somewhere to live until the settlement has been completed.
As the seller, you do not have to agree to the purchaser taking occupation of the property before completion of the settlement. However, if you do agree, then it is wise to get your Solicitor to handle the request formally and have it added to the contract of sale as a special condition.
If you decide to let the purchaser take early occupation of the property you may wish to charge the purchaser a "rental fee" for their occupation of the property until settlement. It is important to bear in mind however, that the relationship between yourself and the purchaser is not that of landlord/tenant and therefore the standard rights and responsibilities of tenancy agreements do not exist.
Your solicitor will make sure that the purchaser has insurance and if required that an appropriate side agreement is entered into by the parties.
If you would like to find out more information about your settlement, or have a specific question that you would like to see featured in our column you can get in touch with us on 6331 2911.
Please note the answers provided are for your general information only and we ask that you call our office on 02 6331 2911 to obtain detailed legal advice for your individual situation.