By Brett van Son – Property Consultant Abel Property
Embarking on the journey of buying or selling a home with a tenant in residence can be a unique venture that comes with both challenges and opportunities. In Perth, particularly, where real estate dynamics are dynamic, understanding the nuances of this scenario is crucial for a smooth and successful transaction.
The Lease Dilemma:
One critical aspect to be mindful of is the lease agreement. If the tenant has a fixed-term lease, and the end date extends beyond your settlement date, the tenant automatically becomes part of the property sale. But its prudent/recommended to note acceptance of the lease on the contract. As the default in Western Australia is a sale with vacant possession, unless specified otherwise in the special conditions of the contract. See the top portion of the contract where the property is sold “with vacant possession unless otherwise stated in the special conditions”
Potential Pitfalls:
Navigating the intricacies of a property transaction with a tenant involves careful consideration. Buyers should be aware of the default vacant possession clause, while sellers must be transparent about the existing lease terms. Miscommunication or oversight in this aspect can lead to complications down the road.
Requesting Lease Details:
For a seamless transaction, requesting a copy of the lease is a prudent step. Understanding the terms, duration, and any special conditions therein can help both buyers and sellers make informed decisions.
In the dynamic Perth real estate market, buying or selling a property with a tenant demands attention to detail and clear communication. As the fine print in contracts can significantly impact the process, working with experienced real estate professionals who understand the local nuances is key. So, whether you’re stepping into the shoes of a buyer or seller, tread carefully, and ensure that every aspect of the existing lease is well understood and addressed in the negotiation process.