Read Time: 5-7 minutes
Homer and Marge wanted to purchase a property in Point Chevalier, Auckland. The property was being sold by negotiation, and it involved a subdivision where the sellers were keeping a newly built home and selling the original dwelling.
They managed to get the property under contract with a 10-working-day due diligence period. But they had one big challenge: they wanted to move in early — before the title had even issued!
As with most property transactions, things were more complex than they initially expected. This is where we helped them negotiate a licence to occupy so they could move in early while protecting their interests.
Moving into a property before settlement can be risky if not structured correctly.
Here’s why:
A poorly structured licence can lead to disputes, legal fees, and financial headaches.
Many buyers assume that because they’ve signed a sale and purchase agreement, moving in early should be easy. It’s not.
Here are three common mistakes:
Sellers often hesitate because they still legally own the property and don’t want extra complications.
This can make early possession too expensive and negates the financial advantage of negotiating a licence.
If you don’t outline clear conditions (insurance, utilities, expiry dates), you’re exposed to disputes and liabilities.
To secure early access for Homer and Marge, we structured a licence to occupy agreement that benefited both parties.
Here’s how we made it work:
Instead of leaving details up for debate, we structured the negotiation upfront. This included:
✅ A Weekly Licence Fee – Instead of full rent, we suggested a rate between 50-75% of the median rent for a similar home in Point Chevalier. This made it cheaper than renting but better than leaving the home empty for the seller.
✅ Who Pays for What? –
✅ Pre-Settlement Inspection – Ensured that everything was in good condition before moving in.
✅ No Alterations Rule – The licensees couldn’t make changes until settlement, except for minor improvements like hanging curtains.
✅ Each Party Pays Their Own Legal Costs – To encourage the seller to agree, Homer and Marge’s lawyer provided the first draft, reducing legal costs for the seller.
To protect Homer and Marge, we included key conditions:
To prevent Homer and Marge from being stuck indefinitely, we structured two key deadlines:
✅ Expiry Date: The licence to occupy ended automatically on settlement day.
✅Sunset Date: If the title wasn’t issued in time, Homer and Marge had the sole right to extend the agreement by three months or cancel it entirely.
This gave them control over whether to proceed while protecting them from delays.
Because we made it easy for the seller to say "yes," they agreed. Homer and Marge moved in before title issued — without paying full rent and with clear legal protections.
And that three-month extension? It turned out to be crucial. When the initial sunset date arrived, the title still wasn’t ready. Thanks to the negotiated extension, Homer and Marge were able to wait out the delay rather than being forced to cancel the deal.
Eventually, the title was issued, settlement went through, and they took full ownership — all while having already lived in their home for months.
1) Draft Heads of Terms: Define rent, utilities, and legal costs upfront.
2) Negotiate a Discounted Licence Fee: 50-75% of median rent makes it attractive to both parties.
3) Protect Both Parties: Outline insurance, pre-settlement inspection, and no alterations until settlement.
4) Set Expiry & Sunset Dates: Ensure early occupancy doesn’t turn into a trap.
5) Secure the Right to Extend: If title delays happen, buyers should control the next steps.
Most buyers don’t realise they can negotiate to move in before settlement. But if structured properly, it’s a win-win.
For Homer and Marge, this meant:
✅ Living in their home months earlier
✅Avoiding full rental costs
✅ Staying in control during delays
Licence to occupy work is outside of our fixed fee scope. This only took 2 hours of our time to draft it and negotiate it on behalf of Homer and Marge. The upside was huge for them and a great result for the money they had to spend.
If you're looking at a similar situation, structure the negotiation right — and make it easy for the seller to say "yes."
