Some buyers have a lease ending or a moving date booked before settlement day. What if you could move into your new home sooner? A licence agreement can make early access possible when the buyer and seller agree in writing.

What Is a Licence Agreement for Early Access in Victoria?

Continue reading and learn how moving in before settlement works in Victoria. You will also find out about seller consent, fees, insurance and what to check before signing.

Key Takeaways

• A licence agreement lets a buyer move in before settlement day.
• The seller must say yes in writing first.
• The agreement lists the dates, fees and how the home can be used.
• The buyer may need insurance before moving in.
• The agreement covers what happens if the sale does not go ahead.
• A conveyancer checks the paperwork before anyone signs.

What Is a Licence Agreement and How Does It Work?

A licence agreement lets a buyer use a home before settlement. The seller stays the owner until the sale is complete.

Buyers can use early access to store furniture, do small repairs or move in sooner.

The licence agreement is a separate document from the contract of sale. It covers only the time before settlement.

The Seller Must Agree First

The seller decides if an early move goes ahead. Under a standard Victorian contract of sale, the buyer gets the keys at settlement.

Any move before then needs a written licence agreement signed by each party.

The process starts with a request from the buyer’s conveyancer. The seller’s legal team can then prepare the agreement. The buyer’s side checks the wording before anyone signs.

What the Agreement Includes

The key clauses cover timing, use, running costs and fees. The agreement gives a start date for early access. The licence ends at settlement or on an earlier day the parties choose.

The agreement should state the permitted use, such as storage only or living in the home. Council rates, water bills and other running costs may also pass to the buyer from move-in day.

Some sellers charge a weekly licence fee for the early period. The parties can agree to pay the amount at settlement. The buyer generally covers the legal cost of drafting the licence agreement.

Insurance and the Home’s Condition

A licence agreement may make the buyer responsible for the home until settlement. The seller can then ask for proof of cover before the move.

Insurance may be needed for the building and for any visitor who gets hurt.

On move-in day, the buyer accepts the home as it is. The early entry also replaces the final inspection before settlement. Photos taken before moving in give a clear record of the home’s condition.

If Plans Change Before Settlement

Settlement can sometimes move to a later day. The licence agreement should say if the buyer can stay until the new date. If the sale does not go ahead, the home goes back to the seller.

The buyer can keep using the property by following the agreement’s rules, such as paying any fee.

Limits on renovations also help protect the seller’s property before settlement.

A Conveyancer Checks the Agreement

A conveyancer or property lawyer explains each part of the agreement in plain words.

They can also check it against the contract of sale, such as the settlement date. Any updates then go into the agreement before the buyer moves in.

Talk to a conveyancer ahead of signing to learn what your licence covers.

Your Next Step Before Settlement

A well-drafted licence agreement gives you clear rules for an early move. Book a meeting with Melissa Barlas to discuss plans, questions or concerns about your property purchase or sale.

Frequently Asked Questions

Is a Licence Different From a Lease or Tenancy?

Yes. A licence agreement is a contract giving permission to use the home for a limited time. A lease gives a tenant stronger rights, including an interest in the land for a set term.

Can a Seller Stay in the Home After Settlement?

Yes, a licence to remain allows a seller to stay on for an agreed time. The new owner grants permission to use the property during the extra period. The seller may pay a licence fee until moving out.

What Licence Fee Is Payable?

The amount depends on the parties’ payment terms. Some agreements set a fee of just $1 to make the contract legally valid.

Can a Small Business Owner Use a Licence Agreement?

Yes. A buyer of a commercial property may ask for early access before settlement. The extra time can be used to set up the business.

Does Conveyed Help Buyers Outside Victoria?

Yes. Conveyed serves New South Wales, Queensland, Western Australia and Tasmania through a network of partners. Melissa Barlas is based in Melbourne.