Seller License To Remain In Possession Addendum Template for Australia

The Seller License To Remain In Possession Addendum is a crucial document in Australian property transactions where sellers require continued occupation of their property after sale completion. This situation commonly arises when sellers need additional time to relocate, are waiting for another property to become available, or have other legitimate reasons for delayed vacancy. The addendum supplements the main sale contract and establishes a formal license arrangement, ensuring legal protection for both parties while avoiding the complexities of a full tenancy agreement. It must comply with Australian property law and includes specific terms regarding duration, fees, maintenance, insurance, and access rights. This document is particularly relevant in situations involving delayed settlements, transitional arrangements, or when sellers need flexibility in their moving timeline.

1. Parties: Identifies and provides full details of the Buyer (new owner) and Seller (future occupant)

2. Background: Outlines the context of the agreement, including reference to the main sale contract and the parties' intention for the seller to remain in possession

3. Definitions: Defines key terms used throughout the document for clarity and legal certainty

4. Grant of License: Specifies the formal grant of license from buyer to seller to remain in possession of the property

5. Term of License: Defines the duration of the license period, including start and end dates

6. License Fee: Specifies any fee payable by the seller for the continued occupation, payment terms, and method

7. Seller's Obligations: Details the seller's responsibilities during the license period, including maintenance and conduct requirements

8. Property Condition: Establishes the condition in which the property must be maintained and eventually surrendered

9. Insurance and Risk: Outlines insurance requirements and allocation of risk during the license period

10. Utilities and Outgoings: Specifies responsibility for utility payments and other ongoing costs

11. Access Rights: Defines the buyer's rights to access the property during the license period

12. Termination: Sets out circumstances and procedures for early termination of the license

13. Governing Law: Specifies the applicable law and jurisdiction governing the agreement