Buying a house that has tenants in it

kwmlondon

Hi. I'm in the process of buying a house. The seller is currently renting it out but the tenants are on a month's notice. As far as I'm concerned it's just like any other purchase - the seller is signing a document to say that on the day of purchase the property will be vacant and the same penalties would be incurred as if the seller was living there and didn't move out.

If I go there on the morning of the purchase and there are people in the property then the seller will get slapped down in law won't he?

I just wondered what the situation was with this.

My plan was to go down there the afternoon before completion with the EA and just ask to see the place to ensure it was empty and if it wasn't instruct my solicitor not to pay. Can I do this?

BitterAndTwisted

NO! You visit the property the day before exchange of contracts to ensure it is vacant.

If you are buying with a mortgage your conveyancer will not agree to exchange without confirmation of vacant possession.

Only a bloody fool would exchange without satisfying themselves that the tenants have gone. Just because they have been given notice does not guarantee that they will leave. Only a court order could enforce that.

ognum

I would not exchange until the house is empty.

What exactly will your vendor or you do if he signs the document gives the tenants notice and they decide not to move, which can happen?

You will then own a house with tenants and have the expence of getting them out!

kwmlondon

BitterAndTwisted wrote: »

NO! You visit the property the day before exchange of contracts to ensure it is vacant.

If you are buying with a mortgage your conveyancer will not agree to exchange without confirmation of vacant possession.

Only a bloody fool would exchange without satisfying themselves that the tenants have gone. Just because they have been given notice does not guarantee that they will leave. Only a court order could enforce that.

But how is it different to the previous occupants not leaving? If I sell my flat and the person comes to move in and I'm still living there what happens?

RAS

Because if a home owner fails to move out (it has happened) their lawyer will have swift word or two and they will compensate you for a couple of night hotel room and storage.

It can take months to remove a tenant and if they wreck the place you have to bear the costs.

kwmlondon

ognum wrote: »

I would not exchange until the house is empty.

What exactly will your vendor or you do if he signs the document gives the tenants notice and they decide not to move, which can happen?

You will then own a house with tenants and have the expence of getting them out!

Would I not just sue the life out of him as I would if I went to move in and found the seller still living there?

I'm just not sure what the difference is TO ME.

Actually, it's a good point. What if I lived with other people and sold the house without them knowing and one day someone came to move in and found that the place was still occupied?

There must be fairly well-worn legal way of dealing with this.

If I'm selling a house and say that it will be empty when the buyer moves in what are the penalties if that's not the case? They must be pretty severe...

mummyroysof3

I would want it empty before anything before official to go ahead and I would check myself not just take their word for it

BitterAndTwisted

The fairly well-worn legal way of dealing with this is to NOT EXCHANGE CONTRACTS until you and your conveyancer have satisfied yourselves that you will have vacant possession.

Any other method will take months and potentially cost you thousands, before you can sue the vendor. Get a judgement in court. Try to enforce it. IF they have the money and you can find them.

As I said in my first response to you: "Only a bloody fool would exchange without satisfying themselves that the tenants have gone".

Werdnal

Formal court eviction can take months. Tenants cannot be on a "month's notice" as LL has to give them atleast 2 months, then apply to court after the 2 months to end their tenancy and evict them. If there is any chance he has issued the notice incorrectly, his court application will be thrown out, and he then needs to start the 2 months notice routine all over again!

Do not exchange on the provision of a worthless piece of paper from the vendor confirming the tenants will be out - it will not stand up in court, LL could be accused of harrassing tenants to get them to leave, delaying the correct eviction route. And you will be in breach of your mortgage if you try to complete on a residential property with tenants living there.

DO NOT proceed until you have viewed the property and confirm it is vacant!

RAS

Oh and if you have a mortgage, there is no way they will release the money until they have confirmation of vacant possession.

kwmlondon

Werdnal wrote: »

Formal court eviction can take months. Tenants cannot be on a "month's notice" as LL has to give them atleast 2 months, then apply to court after the 2 months to end their tenancy and evict them. If there is any chance he has issued the notice incorrectly, his court application will be thrown out, and he then needs to start the 2 months notice routine all over again!

Do not exchange on the provision of a worthless piece of paper from the vendor confirming the tenants will be out - it will not stand up in court, LL could be accused of harrassing tenants to get them to leave, delaying the correct eviction route. And you will be in breach of your mortgage if you try to complete on a residential property with tenants living there.

DO NOT proceed until you have viewed the property and confirm it is vacant!

Having just checked with my own EA they've advised me to view the place myself to ensure it's empty before instructing solicitors to exchange contracts. They've said I am totally within my rights to insist on this.

I just want to wait until I see the structural survey and get the okay from my mortgage company so that there are some dates on the table first, that way I can arrange to view the day before I agree to pay over any money.