Can I Move Into a Property Before Settlement?

Yes, you may be able to move into a vacant property before settlement with the vendor’s permission.

This typically involves a Licence Agreement, in which the vendor (as licensor) grants you (the licensee) a licence to occupy the property before settlement.  The Agreement will usually contain the following terms:

• A date of occupation, when the occupation commences.
• A licence fee for each day of occupation (charged per day, per week or per month) and usually payable as an adjustment at settlement.
• A requirement for you to hold home building insurance from the date of occupation.  If your property is affected by an Owner Corporation (body corporate), the Owners Corporation may already hold the required insurance.
• A licence agreement preparation fee may be charged by the vendor’s conveyancer, this is also typically payable as an adjustment at settlement.
• Periodic outgoings are apportioned from the date of occupation, rather than the date of settlement.  In other words, you (as the licensee) are responsible for the rates and other periodic outgoings during your period of occupation.

For more information about occupation licences, please contact Glenferrie Conveyancing in Northcote on 03 9815 2351.