Vacant Possession

Vacant possession means completing a property purchase with the property empty - no tenants, no owner-occupiers, no personal belongings left in the property. The buyer takes immediate, unencumbered possession.

For investment property purchases, vacant possession is the most straightforward scenario. There is no ongoing tenancy to manage from day one, no existing tenant relationship to inherit, and no risk of existing tenancy disputes carrying forward.

The opposite of vacant possession is purchasing a property with a sitting tenant. This can be advantageous (immediate rental income) or problematic (inheriting tenant problems or a tenancy on unfavourable terms).

In a standard property sale, the contract will specify that completion occurs with vacant possession. If the vendor is unable to deliver vacant possession (for example, if sitting tenants refuse to leave when the vendor intended them to), this is a breach of contract and the vendor is liable for the buyer's losses until vacant possession is delivered.

For properties bought at auction with sitting tenants, the auction legal pack will specify the tenancy terms. Review these carefully - a long-term tenancy at below-market rent restricts your options.