Tenancy Clauses                                                                            Back to the list of Useful Clauses
 

Tenanted Property – Tenanted at possession date

 

If you have a copy of the Tenancy Agreement, attach it and write on the agreement “Tenancy Agreement attached”

If you do not have a copy of the Tenancy Agreement, only write onto the agreement information you are absolutely certain is accurate.    Do not rely on verbal advice of the owner or the tenant.   Preferably, write on the front of the agreement:

“Refer to Condition nn” (whichever condition number applies).

Then that condition should read:

The Vendor shall within 3 working days of the date of the agreement supply to the Purchaser in writing full details of the existing tenancy.

Tenanted Property – vacant possession

If the property is tenanted and is to be sold with vacant possession it is imperative that the tenant is given proper notice. That means 45 days (42 days plus 3 for notification- the minimum a court will support) from when the agreement is unconditional.

Please ensure that the owner or their authorised representative gives notice to the Tenant. The following confirms that the Vendor is responsible for serving notice on the Tenant:

The Vendor warrants to give a notice to the Tenant, such notice to ensure vacant possession is available on Possession Date.

Tenanted Property – Possession within 42 days (very dangerous and must have written acknowledgment of vendor that they have been advised)

The Vendor acknowledges that the property is sold with vacant possession and they have been advised that the statutory notice period for terminating the existing tenancy is 42 days (plus 3 days for notification) from the date that this agreement is declared unconditional.

Tenanted Property – Vendor to stay in possession as a tenant

In the event that the vendor is to stay in the property beyond Settlement Date the terms need to be covered in the negotiations. The ideal way is to create a Tenancy Agreement but this is not usually able to be done at the time the S&P agreement is being negotiated.  In that event please use the following:

The parties acknowledge that the Vendor shall stay in possession of the property as tenant after settlement. The terms shall be:

Rent per week: $ _______________
 

Bond: $_______________
 

And one of the following –
 

Tenancy termination date:  ______/________/_______        OR     Periodic Tenancy where either party can give notice

In all respects and whether or not a Tenancy Agreement is signed by the parties, the parties acknowledge that the terms of the Residential Tenancies Act apply to this tenancy in every respect.

Tenanted Property – Purchaser to take possession as a tenant

The Vendor agrees that in consideration of the Purchaser entering into this agreement and subject to it being declared unconditional that they will grant the Purchaser a tenancy of the property terminating on the Settlement Date such tenancy to be subject to all provisions of the Residential Tenancies Act and otherwise as follows:

Commencement Date:       ______/________/_______

Weekly Rent payable weekly in advance: $ _______________

Bond: Nil

 

The Purchaser shall:
• Be liable for insurance of their own contents.
• Conduct their inspection, as provided for in the Sale and Purchase Agreement Clause 3.2, prior to the Commencement Date.
• Accept the property “as is” from the commencement of the tenancy.
• Maintain the property in substantially its condition as at the Commencement Date, fair wear and tear excepted.
• Indemnify the Vendor against any expense or damages incurred by the Vendor as a result of the Purchasers possession of the property.

 

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