Selling an Investment Property? Don't Overlook the Tenancies Section

When selling an investment property, one small section of the Contract can have significant consequences if it's overlooked.

If the property is currently tenanted and the tenant is expected to remain in the property after settlement, the Tenancies section of the Contract must be completed correctly.

This section confirms that the buyer is purchasing the property subject to the existing tenancy, allowing the tenant to remain in place after settlement.

If the Tenancies section is left blank or not completed, the Contract requires the seller to provide vacant possession at settlement. This means the property must be empty, and the tenant must have legally vacated before ownership transfers to the buyer.

Getting this detail right is essential to avoid delays, disputes, or unintended obligations during the sale process.

Before signing your Contract, take the time to confirm:

• Whether the property is currently tenanted.

• Whether the tenant will remain after settlement.

• That the Tenancies section has been completed accurately.

If you're unsure how your tenancy should be reflected in the Contract, speak with your real estate agent or solicitor before signing. A few moments of checking can prevent costly issues later in the transaction.