What does it mean if the property is sold subject to lease?
If the contract of sale is subject to lease, it means any tenant occupying the premises will remain after settlement is complete, continuing to pay rent to the new owner. The new owner will be unable to move into the property until the tenancy agreement period ends or the tenancy is lawfully terminated. All terms contained in the tenancy agreement will apply to you from settlement date onwards.
If you are looking to move into the property soon after settlement, you would need to discuss this with the Seller to see whether, and when vacant possession can be given to you.
Otherwise, as it stands, you will not be entitled to receive vacant possession on settlement.
What does it mean if the property is sold with vacant possession?
If the contract provides that the property is sold with vacant possession, it means no tenant or other party will be occupying the premises once settlement is completed, and the Buyer are free to rent out or move into the property. Please note that vacant possession does not necessarily mean that the property must be cleared of all debris; it means that the property does not have anyone living inside.
If you require the property to be in a perfectly clean state on settlement, you will need to negotiate for the property to be professionally cleaned at the Seller’s own cost prior to signing. This will need to be added as an additional special condition.
