Buying a house that has tenants in it

BitterAndTwisted

You haven't seen the survey yet? Christ on a bike, you may end up not buying this tenanted property at all.

Cart before horse!

DRP

kwmlondon wrote: »

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?

If you buy a house with resident tenants (even by accident), then you will be their new landlord.

kwmlondon

BitterAndTwisted wrote: »

You haven't seen the survey yet? Christ on a bike, you may end up not buying this tenanted property at all.

Cart before horse!

Eh?

I got a full structural survey done as part of my mortgage application, it's combined with the valuation.

What are you on about? This is just part of the process of buying a place. Comes after appointing a conveyancer and before exchanging contracts, if you chose it.

Unless the survey kicks up something horrific I'm buying the property (a 1993-built terraced house, can't see what could be the problem and if there is one then I won't buy it)

Are you a bit odd?

BitterAndTwisted

I don't think so, but I suspect that you might be.

kwmlondon

DRP wrote: »

If you buy a house with resident tenants (even by accident), then you will be their new landlord.

Yes, I get that. I'll be sure to make sure the place is empty before I move in. I appreciate everyone's feedback.

But I'm fairly lucky in that I know that there are tenants in there. What if I'd bought the place, been shown around when the tenants were away and never knew it was a rented property and the landlord never told the people to move out?

Does that happen?

kwmlondon

BitterAndTwisted wrote: »

I don't think so, but I suspect that you might be.

Mum? Is that you again?

DRP

kwmlondon wrote: »

Yes, I get that. I'll be sure to make sure the place is empty before I move in. I appreciate everyone's feedback.

it would make sense to do this before you exchange contracts. There's no point doing it just before you move in / completion, as you are already committed.

kwmlondon wrote: »

What if I'd bought the place, been shown around when the tenants were away and never knew it was a rented property and the landlord never told the people to move out?

You couldn't move in as they would still be tenants (and you landlord)

kwmlondon wrote: »

Does that happen?

Don't know. As others have said, the lender won't allow the purchase to go ahead unless there is vacant possession.

kwmlondon

DRP wrote: »

it would make sense to do this before you exchange contracts. There's no point doing it just before you move in / completion, as you are already committed.


You couldn't move in as they would still be tenants (and you landlord)



Don't know. As others have said, the lender won't allow the purchase to go ahead unless there is vacant possession.

Yup, I'm not handing over a deposit until I've seen the place vacant.

Thanks.

kwmlondon

Have just spoken to my solicitor and she's said that the seller is responsible in law for the property being vacant on the day of completion. If it's not empty it's a breach of contract and they'd begin immediate proceedings against them. Would be very expensive for the seller as I could claim some hefty compensation.

Doesn't mean I'm not going to want to check on it myself but it's reassuring to know that my solicitor has this covered.

Should be a reassurance to anyone else that if they turn up at a property they are moving into and there's someone else in there then one call to the solicitor and they will take care of it.

sinbad182

'One call and they'll take care of it'

Yeah, simple as that mate!!