Once settlement goes through the property is the buyer’s and they’re entitled to vacant possession straight away. If it was your principal place of residence immediately before settlement, you have until 12 noon the next day to move out and hand the keys to the buyer.
What the General Conditions say
Once settlement takes place the new owner is entitled to vacant possession immediately. The keys, remotes and security codes all go to the buyer. The seller’s real estate agent usually handles the handover.
As the seller you have to remove all vehicles, furniture and anything else not sold with the house.
If the property was your principal place of residence immediately before settlement, you have until 12 noon on the day after settlement to move out. You are liable for any damage caused in that time.
Your contract can override this
The specific terms of your contract always override the General Conditions. Three arrangements come up often:
- Rent back. An agreement for you to rent the property back from the buyer for an agreed period and rent.
- Possession before settlement. A separate agreement letting the buyer move in early. See possession prior to settlement.
- A fixed term tenancy. If the property is sold subject to the lease, the buyer takes it with the tenancy intact. The tenant stays until the lease expires and the buyer becomes the landlord.
Giving notice to a periodic tenant
If the property is rented on a periodic tenancy and the contract provides for vacant possession at settlement, the seller has to give the tenant notice to leave. The notice period is a minimum of 30 days.
If you cannot give vacant possession
Tell your settlement representative as soon as you know there’s a problem. A seller who cannot give vacant possession on the day can end up paying the buyer compensation.
Frequently asked questions
Do I have to be out by settlement?
Yes, unless the property was your principal place of residence immediately before settlement. In that case you have until 12 noon the next day.
Who hands over the keys?
Usually the real estate agent. On a private sale there’s no agent, so you and the buyer arrange the handover between you.
Can I stay on after settlement?
Only by agreement, written into the contract as a rent back or made separately with the buyer.
Talk to us about your sale
We act for buyers and sellers on residential and commercial property settlements across Perth and Western Australia.
Call the settlements team on (08) 9220 4430 or download an itemised quote for your own transaction.
Related: Bank authority, an important first step for sellers
This article is general information and not legal advice. Every property transaction turns on its own facts.
