Early Possession: Why It’s Risky, Even When Everyone Means Well
Early possession sounds harmless. The buyer wants access, the seller wants to help, and settlement is “basically done”. In Western Australia, this is where things quietly go wrong.
Early possession transfers risk before ownership transfers. That gap matters.
What early possession actually means
Early possession allows a buyer to move into a property before legal settlement occurs. The seller still owns the home. The buyer does not yet legally own it.
Why sellers say yes
- The buyer seems trustworthy
- Settlement feels guaranteed
- Everyone wants to “keep things moving”
- There is pressure around timing or logistics
The real risks sellers carry
- Settlement delays or failure
- Insurance gaps and unclear liability
- Damage to the property before settlement
- Difficulty removing the buyer if things collapse
- Legal disputes around access and possession
Insurance is not as simple as people think
Many sellers assume their insurance covers everything until settlement. Insurers often disagree once possession has changed.
Why agents usually advise against it
Early possession creates imbalance. The buyer has control. The seller carries the risk. There are safer alternatives that protect both parties.