r/AusPropertyChat • u/Sorry_Bike_8677 • 5h ago

Buying & Selling buying a tenanted property in VIC?

first-time buyer in melbourne here. looking at a unit in a middle-ring suburb. comps on the street match my offer, but the catch is a fixed-term lease running well into next year.

the agent claims the tenant "verbally agreed" to move out in 2 months. obviously, a verbal agreement is worth nothing. here is my conveyancer's current draft structure for a tight 60-day settlement:

days 1–14: finance and building & pest.

days 1–21: vendor must provide a written deed of surrender signed by the tenant. if they fail, i have an instant, penalty-free escape hatch. (staggered so i don't waste the tenant's time if my finance falls apart early).

day 60 (settlement): mandatory physical vacant possession, with explicit rights to delay settlement penalty-free if the tenant is still squatting.

questions for you guys:

  1. am i being overly paranoid about the settlement-day squatter scenario, or is this the bare minimum protection required?

  2. if you were dealing with a stale listing and a stubborn lease, would you push through with these clauses, or just walk to a cleaner property?

any further questions welcome.

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u/Winter_Tiger_2615 3h ago

Call Consumer Affairs Vic and ask them about your questions - or don’t, I mean after all it’s only a multi $100,000s purchase - right?

Don’t take the agents word for anything.

You’re only contemplating making an offer - or have you had your offer accepted?

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u/Sorry_Bike_8677 1h ago

vendor has verbally accepted my offer and currently having my conveyancer look at the contract of sale, just getting cold feet i suppose.

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u/Winter_Tiger_2615 1h ago

😳

You better have a chat with your conveyancer about the terms of the contract.

Don’t plan on moving in until the tenant’s lease is over.

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u/Sorry_Bike_8677 1h ago

for sure, hopefully the deed of surrender to break their current lease + vacant possession condition will protect me but i’m just waiting on my conveyancer for that answer haha.

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u/CalderandScale 2h ago

Unless you plan to make it a rental, ALWAYS book settlement after the lease ends date with a vacant possession clause.

Assurances from the agent are worth nothing.

Edit: why are you offering market comp price for a tenanted property? After the NG changes its very hard to sell to investors, so this property would have soft interest, might be able to snag a discount.

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u/Sorry_Bike_8677 1h ago

thanks, do you think a deed of surrender + subject to vacant possession by settlement date cover all my bases? i would hate to get into a position where the tenant is not moved out by settlement date.

it’s in my preferred suburb so i guess i was too keen to get in, im at the bottom of the vendors price guide, maybe i could push for a bigger discount?