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Outgoing Tenant; Vacant Possession at Settlement and the Condition Report

Discussion in 'The Buying & Selling Process' started by legallyblonde, 10th Mar, 2016.

  1. legallyblonde

    legallyblonde Well-Known Member

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    Hi all,

    I am currently in the process of purchasing IP2. The house has no structurally issues and passed the B&P Inspection. However, there is a large number of cosmetic defects that have been caused by the current tenant, as per the incoming condition report. If four weeks bond ($1260) was collected this would cover most of the damage. The selling agent owns the business and their staff are the PM.

    Worst case scenario, I am stuck with the damage and have to pay to fix it myself.

    However, I am wondering if anyone has been in this situation before. What do you think my chances are looking like? Whilst the repairs aren't expensive I would rather like to avoid paying the repairs and having a vacancy to fix these issues.

    Any thoughts?

    I shall spill all the goss once the property settles in a month or so.
     
  2. jrc

    jrc Well-Known Member

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    What does your contract say? Probably that you are buying the property in the condition it was when you exchanged contracts.
     
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  3. SeafordSunshine

    SeafordSunshine Well-Known Member

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    Hi Legally Blonde here are Some questions you might want to consider
    1.I think you can't claim on tax any repairs you do when you first buy a property...(I am not a tax expert), so please check with someone who can tell you.
    2.I would be checking with the Agent/Property Manger what their stand is on claiming the bond, also ( I am not a property lawyer) Is it being sold with vacant possession?
    3.Is the vendor claiming the bond to Make Good? (If they do, you wont have to do anything!!)
    4.Another scenario, you keep the tenants provided they make good themselves?
    5. Have you been given a copy of the ingoing inspection report? Perhaps that constitutes part of a contract?


    Sorry I cant help any further, but sometimes asking the right questions can lead you to where you want to be, and Good Luck with your purchase!
    Cheers
     
    Last edited: 11th Mar, 2016
  4. Jaik2012

    Jaik2012 Active Member

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    I was in similar situation when I bought my PPOR. Tenant had not maintained the property well & I had to speak to the PM many times to convey that I need the property in a decent condition when the keys are handed over to me. I gave her the list of problems I noticed to compare with the photos taken before the lease. To make the conversation a little easier, I told the PM that they could get to manage the property if I turn it to IP. At the end, it wasn't that bad. They fixed most of the stuff leaving very minor repairs which was expected.
     
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  5. legallyblonde

    legallyblonde Well-Known Member

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    Thanks all.

    The contract is for vacant inspection. I am hoping because the PM and agent are both the same company they will be attempting to make things right!
     
  6. legallyblonde

    legallyblonde Well-Known Member

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    I shall keep you posted!
     
    jim1964 likes this.
  7. dabbler

    dabbler Well-Known Member

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    Before taking possession, let your legal rep know of any issues, some money can possibly be retained if there is legit problems.
     
  8. legallyblonde

    legallyblonde Well-Known Member

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    Hey All,

    The property in question settled earlier this month. Unbelievably the outgoing tenants replaced 5 of the doors and ALL of the carpet in the property! Sure it is cheap carpet, but it saves me having to replace it in the next few years.

    I have no idea how I got so lucky! Literally save me thousands of dollars on my minireno/tidy up!
     
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  9. wylie

    wylie Moderator Staff Member

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    Sounds like they may have damaged doors and carpets and may have thought it is better to choose quality and price and do it themselves rather than have owner or tribunal force them to pay even more for better quality. But even if that is the case, you've still done well.
     
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  10. legallyblonde

    legallyblonde Well-Known Member

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    The doors did havr damage. But most of the carpet was not too rough.
    I am so unbelievably lucky.
     
    joel likes this.
  11. SeafordSunshine

    SeafordSunshine Well-Known Member

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    So the lesson we all learned is that you should ask the tenants to make good!
    Congrats Legally Blonde!
    Next purchase please!
     
    legallyblonde likes this.