Vacant Possession in Western Australia: Your Essential Guide to the REIWA Contract

1. Plain English Definition

"Vacant Possession" means the property must be completely empty of all people and their personal belongings at the time of settlement. This ensures that as the buyer, you can move in immediately or lease out the property without any delay or the need to remove previous occupants or their items. It's a fundamental clause in any Western Australia property contract, particularly the REIWA Contract, designed to give you clear control of your new asset.

2. The Danger Zone: Buyer's Risk

• Delayed Settlement: If the seller fails to provide vacant possession on time, settlement can be delayed, potentially incurring significant penalty interest under the REIWA Contract, often calculated daily on the full purchase price.
• Eviction Costs: Should previous tenants or unauthorised occupants remain, you, as the buyer, might face substantial legal costs (potentially thousands of dollars) and a lengthy process (weeks to months) to obtain an eviction order through the Magistrates Court of Western Australia.
• Property Damage: Remaining occupants could intentionally or accidentally damage the property before vacating, leading to unexpected repair expenses that might not be covered if the damage isn't identified and addressed before settlement.
• Lost Rental Income: For investors, the inability to gain vacant possession means a direct loss of potential rental income for every day the property is unavailable, severely impacting your investment's profitability and cash flow.
• Unexpected Storage Fees: If you've arranged to move your own belongings or tenants in, and the property isn't vacant, you might incur unexpected costs for temporary storage and additional removalist fees.
• Breach of Contract Disputes: The seller's failure to provide vacant possession as agreed is a breach of the REIWA Contract, potentially leading to costly legal disputes, claims for damages, or even the right to terminate the contract.

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4. Real-Life Western Australia Scenario

Mei Ling, a first-home buyer in Cannington, was excited to move into her new house. On the day of her pre-settlement inspection, she discovered the seller had left behind a shed full of old furniture and garden tools. Despite her conveyancer's efforts, the seller refused to remove them before settlement. Mei Ling had to pay a removalist $800 to clear the items after she took ownership, delaying her own move-in by several days. This unexpected cost and hassle could have been avoided with a more robust pre-settlement inspection and clear communication regarding vacant possession.