Vacant possession is a legal term that is used in buying and selling property. It means that the property should be free from all residents, items and other third party interests on the day of completion.
This is an important part of a transaction, and it’s your responsibility to ensure that the property is vacated by completion day. Failure to do so risks breaching your contract and could result in a claim from the buyer.
What is Vacant Possession?
Vacant Possession Clause BC is a term used in a home sale or purchase transaction to mean that the property will be empty of tenants, personal affects and possessions, when the contract is completed by the buyer. This is a legal requirement that all parties must follow to ensure the transfer of ownership goes smoothly and to avoid any potential disputes down the line.
Buying or selling a property with vacant possession can be a confusing process, but your conveyancer will have the knowledge to guide you through it. They will be able to help you understand the implications of the property’s existing tenancy and provide legal advice on how best to deal with any issues that arise, ensuring you get the right outcome for your property purchase or sale.
There are a number of common problems that can arise around the property purchase or sales process when it comes to vacant possession, and they could result in a delay for the buyers, an unhappy seller, a claim from the buyers and/or a loss of money for the sellers. Fortunately, most of these problems can be avoided with the right level of planning, communication and knowledge of the property’s current occupants.
The standard form of the APS (Agreement to Sell) includes a clause that states that the buyer will be given vacant possession on completion. However, the APS also needs to include an end date for the tenancy – for example, the tenant must be removed from the property by a certain day. This can be tricky to do, particularly if the tenant is a family member of the buyer.
Another common problem that can arise is that of a lease being terminated or renewed, which is likely to be the case with any property where there are existing tenants in place. Your conveyancer will be able to advise you on this, and they’ll take care of removing any active tenants before exchange of contracts occurs.
Finally, if a seller does not take possession of a property by its agreed date of completion and the sale does not proceed due to a delay, then they are in breach of their contract and may be liable for liquidated damages, or LAD. This amount is a sum of money that the seller must pay to the buyer.
What is the Possession Date?
The possession date is an important part of a real estate transaction. This date can vary depending on state and local laws, the terms of your sale contract, and your own personal preferences. It can also be negotiated by both the seller and buyer.
If you are selling a property that is currently occupied by tenants, your possession date may be delayed. It is important to work with your real estate agent to find a date that works for you and meets the needs of both parties.
Many real estate transactions involve a landlord and tenant relationship. This can create some complex issues that may need to be addressed before you close on a sale. Your lawyer can help you understand these issues and make sure they are not a problem at the time of closing.
Whether you are purchasing a home that is currently occupied or not, the possession date is one of the most important points to negotiate in your sales contract. Getting the timing right can help you avoid any pitfalls and ensure that your move into the new home goes smoothly.
The possession date in a new construction project is determined by a number of factors including the amount of construction work left to be completed, the availability of materials and labour on site, and licensing and approvals that need to be obtained. Market conditions and the availability of cash flow for the project are also factors that can affect the possession date.
As a result, it is important to communicate your Possession Date to your Builder and make sure that all of your living arrangements and financing requirements are covered in the builder’s final plans. This will help make the process as stress free as possible for both you and your Builder.
In the event that you need to extend your possession date due to construction delays, your Builder will be able to assist you in planning for these changes. They will do their best to accommodate you and keep your experience as smooth as possible!
The Possession Date is the day that you will take ownership of the property. This is the date that you will be responsible for paying all property taxes, utilities, and other services that are related to the property. It is also the date that you will receive the keys to your new home.
What is the Completion Date?
Often overlooked by home buyers and sellers alike, the completion date is a big deal. It marks the point where a buyer becomes entitled to take legal ownership of a property, whether it’s a newly built house or an existing rental property. The completion date is usually on a day other than the possession date so that the seller can receive payment before handing over the keys.
The completion of the transaction typically occurs a week or two before the agreed possession date, although in the real world this isn’t always the case. It’s important to make sure that the sale of the home is completed in the most timely fashion possible and this can be achieved by ensuring that all parties are on the same page about the actual date of completion.
This is especially true when the property in question is occupied by tenants, as it can be difficult to ensure that they leave on time. Not only do you have to worry about any personal items that they may leave behind, but also the fact that they might be occupying a property they’ve been renting for years and want to move out of.
As a real estate agent it’s your job to make sure that the best and most cost effective solution is found to remove any tenant occupants from the property before they are legally entitled to take possession of it. This may require some creative thinking and negotiation, but it can be a win-win situation for both parties.
What is the Possession Timeline?
The possession timeline is a key part of any real estate deal. It often rears its head during the contract negotiation stage, but is also an issue when a seller or buyer needs to reset the date based on changing circumstances.
For example, if a seller needs to move out of their current home before their new job starts in September, they may request an immediate possession date. On the other hand, if they need time to find a home and move out, they will be more likely to select a flexible possession date of up to 90 days after closing.
This can be a tricky point to negotiate, and often a good idea for a real estate agent to help navigate the situation. Ultimately, the possession timeline should be a compromise between the two parties.
As the seller, you will need to make sure that all of your belongings are removed from the property on the day of completion (also known as “the vacating date”). This is the same time when you must give your tenants notice to vacate the property and give vacant possession to the buyer.
In addition, you will need to ensure that all chattels, or moveable objects, are emptied out of the property and left at the front gate. If you do not remove all of these items, you will be in breach of your contract and you could end up being liable for damages or rescinding the sale of the property.
Another common scenario that affects the possession timeline is if there are tenants living in the property. The seller must follow the standard tenancy schedule for this, and if they have not completed the process, you can have the contract rescinded or the tenant can be given specific performance to remove themselves from the property.
For a lot of sellers, it is best to choose a possession date that is short enough to allow them to get out of the home before their new job starts. This will avoid them from being able to use the extra months of possession and having to pay for them.
Among many other things, David A. Grantham is a contributing author to UmassExtension West Vancouver Blo. He is a renowned expert on real estate in BC.
Born in North Vancouver, Louisiana, Dr. Grantham grew up in Lower Lonsdale. He then went on to complete his business degree at the University British Columbia. As of this writing, Grantham has completed over 100 projects, including the development of a high rise building in Vancouver.
He is a husband, father, son, brother, and friend. He was a dedicated outdoorsman and enjoyed sports such as hunting, fishing, scuba diving, and snow skiing. His wife, Alison Grantham, and their two daughters survived him. He is survived by his wife Alison Martin Grantham and two daughters.