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Check the Chattels List.

Emma inherited a small investment property from her parents approximately five years ago. The property was tenanted by long-term tenants who had lived in the property for over a decade.

The tenants paid market rent and always took great care of the property. Emma managed the property herself as she lived nearby, but she only ever visited the property a few times.

Emma was offered her dream job based in the North Island. She packed her bags and started her new adventure without a second thought. After a year or so, the property market really started to take off. Emma decided to make the most of it and sell the investment property to make a great profit. She contacted a local real estate agent and began the marketing process.

Emma informed the tenants that she was putting the property on the market and would try her best to find a purchaser who would keep them on as tenants. After a few weeks of marketing, it appeared that the majority of the potential purchasers wanted to purchase the property as their home, rather than to rent out. Unfortunately, this meant that the long-standing tenants would have to move out.

Emma secured a great unconditional offer which was to be sold with vacant possession. Emma gave the appropriate notice to the tenants to vacate the property. The tenants were not happy about this, as they were under the impression that they would stay on as a tenants for the new owners.

The tenants reluctantly began to pack all of their belongings as the settlement date quickly approached. This included the curtains, the dishwasher and the garden shed, all of which they had set up themselves.

When the purchasers carried out their pre-settlement inspection they advised their solicitor that these items had been removed. These items had been listed on the chattels list of the Agreement for Sale and Purchase and were, therefore, part of the sale.

When completing the chattels list on an Agreement for Sale and Purchase, it is important to ensure none of the items listed belongs to the tenants.

If you feel you could use some specialist advice, don’t hesitate to contact the Property Team.

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