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ARTICLE · 30 JULY 2026

When Property Sales And Leases Collide - Managing Risk At Settlement

Bartier Perry Solicitors
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Selling property with tenants in place requires careful navigation of vacant possession requirements, termination notice periods, and GST implications. Understanding the legal framework for residential and commercial tenancies, including minimum notice periods under NSW legislation and lease registration requirements, DUPE

AustraliaReal Estate and Construction
Andrew Grima
Andrew Grima
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Selling a property with a tenant in place can create unexpected settlement issues. Even where a termination notice has been served, vacant possession may not be guaranteed by settlement. For vendors, purchasers and landlords, understanding these issues early can help avoid disputes, delay and unexpected costs at settlement.

This article covers what vacant possession actually requires, the notice periods that matter for ending a residential tenancy for sale, commercial leasing considerations on sale, and the GST position on the sale or lease of residential and commercial property.

What vacant possession requires

Vacant possession generally requires the property to be free of people and claims to occupation and free of chattels (excluding inclusions under the contract) that materially interfere with the purchaser’s use and enjoyment of the property. It does not require the premises to be entirely empty, minor leftover items are generally de minimis (too trivial to matter).

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