Selling a house with tenants in situ

Wasim

Hello All,
First time posting and am hoping for advice!

I would like to know what happens if an EA buys your property tenanted?! Are they legally obliged to give you paperwork explaining the process of sale with tenants in situ? Am I required to give notice to the existing rental agent or does the EA do this (the buying agent will be taking over with their own tenancy agreement and the buyer will receive the rental income until he decides to sell)!!

I simple terms I would like to know whether the EA has a legal obligation to explain the process of sale with tenants in situ and if he is legally obliged to provide me with paperwork describing the process?

Have I made sense? Hope so
:rotfl:

forgotmyname

Not really you posted in the Credit Card forum.

Fire_Fox

Welcome! Why is the estate agent buying your house??? No they don't have to explain anything as regards the legal position of sitting tenants they are not solicitors. A landlord's contract with the letting agent is his own business, he is responsible for reading the terms and conditions and cancelling it. A new landlord inherits the tenant with the existing tenancy agreement, a new landlord or new agent cannot enforce a different tenancy agreement on the sitting tenant.

Wasim

Thanks Firefox... The Estate Agent is acting on behalf of his buyer who is purchasing the property tenanted. The agent expects to terminate the existing tenancy agreement with another agent and replace it with his own agreement. He is pushing the tenants to do this... The EA has also provided no paperwork to us to explain this process, whether it is legal or how indeed a deposit is dealt with!!!

Fire_Fox

Now I am confused are you the tenant or the owner? Has the sale completed or is it still going through? Why do you think the estate agent should provide paperwork?

The tenants will be contracted to the new owner/ landlord (NOT the agents) under the same terms as before. The agent can expect what he likes doesn't mean he can have it, the tenants should ignore it if they do not wish to sign a new AST. Deposit should be transferred into the new landlord's name, the new landlord is responsible for returning it at the end of the tenancy.

Basically nothing has to change for the tenants, they don't have to do anything at all, except perhaps change their standing order at the bank ONCE they have received written notification from the landlord (NOT the agents unless they supply proof they are acting for the new landlord).

Wasim

The EA buys properties for man who lives in Singapore. The buyer wishes to buy it tenanted. The EA is dealing with the sale and intends to replace the existing tenancy agreement with a new one with them!
My issue was whether I need to be involved in this at all prior to sale and whether the EA has the right to visit my tenants to try to get their new rental contract signed before the date of completion! I believe that they are also trying to get the deposit (tenants) back from my existing rental agency on behalf of their buyer... They say that this is all completely legit and that if the buyer has chosen them as the rental agent that the existing contract will simply be replaced by them upon completion of the sale!
Hope that is a bit easier to understand? I am not an expert which is why I am looking for advice!

G_M

Are you the tenant? If so:

The EA does not buy the house - he is acting as agent for the buyer.

If a buyer buys the house, the existing tenancy is not affected. No new tenancy agreement is needed - the new owner simply becomes the landlord.

However the new owner/landlord must inform the tenant of the change of ownership in writing so that the tenant knows who to pay rent to.

My advice is
1) do not sign any new tenancy agreement unless you want to (ie if you'e LIKE the security of a new 12 month contract - fine, sign one
2) do not start paying rent till informed by i) preferable the old landlord or his leting agent and ii) certainly the new landlord (or his letting agent - who may or may not be the same one)
3) if in any doubt about who to pay rent to, stop paying rent but
i) put the rent aside so you can pay it when told
ii) write to the old LL (or his agent) seeking clarification and
iii) write to the new LL )or his agent) seeking clarification

If you are the current owner/landlord, who is selling

1) it is up to your tenants whether they are willing to let anyone (agent etc) come round. They can refuse
2) it is up to your tenants whether they are willing to sign a new tenancy agreement - they don't have to
3) YOU are responsible for their deposit, but that responsibility will pass to the new owner/landlord when you sell - Normally the amount of the deposit would be taken into account in the sale price, and the depsoit scheme informed of the new LL's details.

Wasim

Thank You G_M you have been most helpful :-)

Wasim

It is the latter and I was wondering if there is a legal document (Act or Law) to back this up?! Maybe like an EA or Rental Agent Act.

Forever grateful
W

Fire_Fox

Back which bit up? General contract law, both the Landlord and Tenant Acts ... People are struggling to give you more than general advice because you are repeatedly not answering questions. Once again are you the landlord/ vendor or are you the tenant?

G_M

Wasim wrote: »

It is the latter and I was wondering if there is a legal document (Act or Law) to back this up?! Maybe like an EA or Rental Agent Act.

Forever grateful
W

As Fire Fox says, it is unclear what exactly you are asking for.

However, try

* the Landlord & Tenant Act 1985 section 3 and

* the Landlord and Tenant Act 1987 section 50