Perth in lockdown – What this means for the real estate industry.

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As Western Australia enters a 5-day lockdown this week, please find below information regarding real estate transactions.

Home opens
With everyone in lockdown and visitors not permitted in homes, home opens for properties for sale and rent will not be permitted.

Individual guided inspections
As everyone is in lockdown and visitors not permitted in homes, an agent will not be allowed to take individuals to properties for sale and rent.

Agents can still show properties through videos or walk throughs if the video has already been made prior to lockdown occurring.

Periodic inspections
It is assumed that periodic inspections will not be deemed essential and property managers will not be able to conduct physical inspections during the lockdown.

Lease terminations
If a lease is coming to an end and the tenant has agreed to provide vacant possession, then it can only be assumed that the tenant would have to stay in the premises and the lease would continue until the lockdown is over.

It would be prudent to email the tenant to confirm the extension.

Pre-purchase inspections
It is assumed that pre-purchase inspections will have to be delayed until the lockdown is finished. It may be possible for a seller living in the property to be sold to conduct an inspection through their mobile phone/video device.

Property settlements
The following comments are made on the assumption that Landgate and settlement agents will be able to provide settlement services during the lockdown.

If the seller resides in the property and settlement is scheduled for the lockdown period and parties in their contract have adopted REIWA’s COVID-19 Annexure (form 194) then the parties have already agreed to time extensions for their settlement.
If the seller resides in the property and settlement is scheduled for the lockdown period and the parties in their contract have not provided for any COVID-19 occurrences, then it would have to be assumed that the seller would have to remain in lockdown in the property and the parties will have to negotiate an outcome.
​​If the property is leased, then it is assumed that the tenant in lockdown would not be able to vacant the premises and the parties will have to negotiate an outcome.
​​​​​If the property is vacant, then it would be assumed that the settlement would proceed, and the buyer could enter the property when the lockdown terminates.​​

Everyone at Empire Property Solutions encourages everyone to stay inside unless for essential purposes, wear a mask when outside your home and wishes everyone good health and to stay safe during these strange times.

 

*Reference: REIWA

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