Latest News [index] Pitfalls of early possession
The opening paragraph in the recent decision in Wisheart & Ors v Featherston neatly summarises the case, this paragraph stating: "The present case is yet another example of the pitfalls that await a vendor who allows a purchaser to enter into possession of a property prior to the date of possession."
The facts of the case are simple. In March 2010 the parties entered into an agreement for sale and purchase. A deposit of $125,000 was paid, with the balance of $1,550,000 due the following March 31. In the meantime the purchaser was to take possession on the 16 April that followed payment of the deposit.
The following year the purchaser declined to settle, finding fault with numerous aspects of the property and requiring price reductions on account of the same.
Eventually the matter came before the Court - the vendors having no other avenue to remove an unwilling purchaser in possession.
Although the vendors were able to obtain an order that the purchaser leave, the cost and energies involved were significant.
If you are a vendor being asked to allow early possession, please feel free to discuss this matter with a member of the Ayres Legal team. This is a decision that requires extremely careful consideration and should be allowed only in rare circumstances.