This information has been provided by
Australian law firm, Australian Conveyancing Services and is applicable in New South Wales
only.
When you buy a property and the tenants are to remain in the property, then I recommend that you follow this procedure:
Before you sign the Contract, talk to the Seller or their Agent who manages the tenancy to make sure that the tenants are regular payers and that they keep the property in good condition. If they are not good tenants, look at whether they are on a fixed term tenancy or simply a periodic tenancy. If fixed term, how much longer does the term have to run? If periodic, then you can ask for vacant possession in the Contract (Seller needs to give 4 weeks notice after contract signed).
On settlement, some of the items that you should collect from the Seller include:
The tenancy agreement (as signed by the previous Landlord (the Seller) and the tenant
A copy of the condition report (if one exists)
Bond transfer form
A letter from the Seller addressed to the Tenant directing them to pay the rental to the new Landlord (the Buyer)
You will also need to adjust the settlement figures for the rental, and collect keys from the Seller/Agent (as your Landlord’s copy).
For more information on residential tenancies in New South
Wales, visit the Residential Tenancies Authority site, which provides a host of free information at www.fairtrading.nsw.gov.au.
