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Sellers: Should you grant early or prior possession of a property to a buyer (what are the pros and cons)?

2022-05 kdd conveyancing prior possession blog feature

Sellers: Should you grant early or prior possession of a property to a buyer (what are the pros and cons)?

Further to our previous blog post – Buyers: Avoid nasty surprises! Why it’s smart to insist on a final inspection before your property settlement, giving tips to buyers on the merits of a final inspection before property settlement, this month’s tip is for sellers who need to decide whether to provide early/prior possession of a property to a buyer. 

What is a prior possession?

An ‘early possession’ or ‘prior possession’ of a property by a buyer is what happens when the buyer gets the keys to the property after the contract is signed but before settlement is finalised (i.e., ‘prior’ to settlement which usually takes 30 to 90 days from the time the contract is signed). This situation is also known as ‘early access’.

Why does this happen?

Likely scenarios for prior possession are:

What are the advantages of early possession?

It depends on whether we are talking about the seller or the buyer.

Advantages to the seller of early possession:

Advantages to the buyer of early possession:

What are the disadvantages of early possession?

This again depends on whether we are talking about the seller or the buyer.

Disadvantages to the seller of early possession:

Disadvantages to the buyer of early possession:

Therefore, early possession is not a decision to be made lightly. It will be prudent for both parties to consult their conveyancers or lawyers, and, if they decide to still go ahead, ensure that conditions and legal paperwork is all in good order.

How to make proper arrangements for early possession?

How KDD Conveyancers could help

While early possession agreements are not common these days (except under clear licence or occupancy agreements), some sellers and buyers may seriously want to consider it for their own reasons. Whether you are a property seller or buyer, you can potentially save time and money, as well as reduce stress, by engaging qualified conveyancing professionals like ourselves to look over your settlement contract (which sometimes runs to 100s of pages long!) and ensure that settlement is still completed smoothly where the buyer has taken early possession of the property.

Our caring and experienced specialists can help you create a positive property settlement experience that is as supported, smooth flowing, and pleasant as possible. We have the people and technology to make it work out right for you. Ask us to find out how you could benefit from our input.

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