Can I move in before settlement?

It isn’t uncommon for purchasers to want to move into their new property before settlement. Whether or not you will be able to is not necessarily a ‘yes’ or ‘no’ answer. It depends on whether the vendor is happy for you to do so. Often, the vendor will need to consider any tenants they have at the property, or their own ability to move out earlier than settlement.

If a vendor allows you to move in before settlement, they will often charge a weekly “rental” amount that will then be adjusted in the settlement figures. However, just because you may be paying a weekly sum to be in the property doesn’t mean you have created a landlord/tenant relationship with the vendor. The relationship created is a unique one. The risk passes to a purchaser immediately upon taking possession of the property, so you will need to insure the property and vendors will often ask to see a copy of the insurance before they will allow you to move. You will also be liable to pay the rates and other outgoings for the property from the date you take possession of the property, rather than the date of settlement.

It’s important to have an inspection of the property before taking possession of the property, because when you move in, you accept title to the property. If something happens to the property, or built in appliances, it will be your responsibility to fix them, not the vendor’s. In the same way that you need to be satisfied with the condition of the property before entering the contract, you also need to be satisfied with the condition of the property before you move in and accept title to it.

While vendors may be happy for you to move into the property before settlement, this does not mean that you can made alterations to the property, particularly alterations of a structural nature. If you wish to carry out work to the property, you should seek the vendors specific agreement and include a clause in the contract reflecting that the vendor has agreed for you to do so.

We hope that this information gives you some insight about possession before settlement.