PLEASE READ BEFORE POSTING
Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.Re: advice on exchange of contracts
firsttimebuyer2017
Posts: 27 Forumite
Hi,
We are first time buyers (and will be owner occupiers) and really need advice. Had an offer accepted two months ago. Property currently has tenants in who go onto a rolling tenancy at the end of this month. We've been told the vendor will only serve notice when contracts are exchanged and this will be two months' notice. Completion will take place one week after the expiration of the two month period (as stated by their solicitor).
We are concerned about committing the deposit and ending up in a protracted situation of waiting for the tenants to leave.
What is a reasonable position here? Should contracts be exchanged with vacant possession?
We have not yet undertaken the searches and are not in a chain. Neither is the vendor in a chain.
Thanks in advance.
We are first time buyers (and will be owner occupiers) and really need advice. Had an offer accepted two months ago. Property currently has tenants in who go onto a rolling tenancy at the end of this month. We've been told the vendor will only serve notice when contracts are exchanged and this will be two months' notice. Completion will take place one week after the expiration of the two month period (as stated by their solicitor).
We are concerned about committing the deposit and ending up in a protracted situation of waiting for the tenants to leave.
What is a reasonable position here? Should contracts be exchanged with vacant possession?
We have not yet undertaken the searches and are not in a chain. Neither is the vendor in a chain.
Thanks in advance.
0
Comments
-
Do not exchange contracts until the property is vacant. The tenants do not have to move out at the end of the 2 month notice they can wait until the landlord takes them to court this could take up to 6 months. If the tenants don't leave and you have to complete one week after exchange you will finish up buying a buy to let.0
-
Find a different house.0
-
Cakeguts is 90% right.Do not exchange contracts until the property is vacant. The tenants do not have to move out at the end of the 2 month notice they can wait until the landlord takes them to court this could take up to 6 months. If the tenants don't leave and you have to complete one week after exchange you will finish up buying a buy to let.
If the tenants don't leave after 2 months, which they may well not (they do not legally have to as the 2 months notice does not end their tenancy) then the seller will be in breach of contract, since they will not be giving you 'vacant possession'.
You would refuse to pay or Complete because of this breach, and could sue the seller for your costs.
So although the legal risk is actually the seller's, not yours, the inconvenience is certainly yours, as you'll not have bought or be able to occupy the property you had planned to.
Not only would I strongly advise you not to Exchange till the tenants have left (and you've visited the property to check), I would advise you not to even spend money (on searches, survey, legal costs etc) till the tenants have left.
Especially with this seller who clearly does not understand landlord/tenant law, ir the relaities of his situation.0 -
The other problem with buying a house that has tenants is that you don't know if the house will be in the same condition when they leave as it was when you made the offer. If the tenants cause more damage than is covered by their deposit would you still want to buy the house at the same price as you offered?
Now that you know all the negatives about this purchase you may wish to withdraw your offer and look for a different house?0 -
Thanks for all input so far.
Our concern is we do exchange and then get drawn into delays and stalling while the vendor continues to accrue rent from the tenant. I am mindful of all the feedback regarding the hassle and we definitely don't want to be involved in legal disputes.
We had the offer accepted two months ago but were not informed the rolling tenancy ended this month.
We had intended to commence searches after receiving outstanding certificates.
Would it be considered reasonable to instruct our solicitor to tell them we will only exchange if vacant?
Thank you.0 -
the Vendor wants their cake and eat it, that is rent until completion so they get as much money as possible.
Now tell them your requirements which protects you as well, vacant on exchange Or no deal. Do not sink anymore money and tell solicitor to stop all work"It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
G_M/ Bowlhead99 RIP0 -
firsttimebuyer2017 wrote: »We are first time buyers (and will be owner occupiers) and really need advice. Had an offer accepted two months ago. Property currently has tenants in who go onto a rolling tenancy at the end of this month.
So the vendor couldn't have got the tenants out before that point anyway.We've been told the vendor will only serve notice when contracts are exchanged
The vendor is an idiot, and your solicitor should tell his solicitor that this is not on.and this will be two months' notice.
Yep.Completion will take place one week after the expiration of the two month period
And if it can't, because the tenants haven't moved out...?Should contracts be exchanged with vacant possession?
Abso-flippin'-lutely.0 -
The only reason you should contemplate this is that your expectation would be that the tenants didn't leave, the vendor was unable to get vacant posssesion and you got a big wodge of compensation.
That might work as a gamble if you were in free or low cost accommodation such as parents, with no particular issues if you had to stay a few more months.
More likely is that the tenants will leave on time and the place is somewhat of a mess and you've taken a big risk for no real gain amd a bunch of hassle, perhaps the tenants leave a month or two later than planned and you get minor compensation plus in the meantime the vendor has your deposit.
Unfortunately you have found a vendor that's a greedy fool and you should just go look for another house.0 -
When the seller tells his solicitor that he plans to exchange contracts with the tenants still in occupation - I suspect the solicitor will 'put him straight'.
As a starting point ask the EA to check with the seller... "Has the seller asked his solicitor's advice about exchanging contracts before the tenants have moved out? Because his solicitor will probably explain the high risk this causes for the seller."0 -
Our solicitor has informed us of their terms, so l am assuming the vendor's solicitor has raised no objections.0
This discussion has been closed.
Categories
- All Categories
- 343.1K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.2K Work, Benefits & Business
- 607.9K Mortgages, Homes & Bills
- 173K Life & Family
- 247.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards