24/08/2026
Moving In Before Settlement? Know the Risks
Getting the keys early might sound convenient, but moving into a property before settlement, known as prior possession, can create unexpected legal, financial and insurance complications for both buyers and sellers.
For buyers, the property isn't legally yours until settlement is complete. If the transaction doesn't proceed as planned, early possession can complicate your position and may have duty implications.
For sellers, handing over possession early can make matters more difficult if settlement is delayed or doesn't proceed. Questions around property damage, responsibility and insurance can also become more complicated once the buyer has moved in.
Insurance is particularly important. Buyers have an insurable interest in the property once the contract is signed and should make sure appropriate cover is in place. Both parties should understand their insurance position before agreeing to early possession.
Prior possession isn't something to agree to casually. Any arrangement should be clearly documented, with both parties understanding their rights, responsibilities and potential risks before the keys are handed over.
Considering prior possession? Speak with our team before making an agreement.
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📞 Perth (08) 9381 0500 | Manjimup (08) 9777 2324
