Renting from seller?

tillica

Hello everyone,

Due to extremely slow solicitors, particularly the vendor's, we are behind schedule in my flat purchase. The estate agent suggested the possibility of my renting it from the vendor (it was previously rented out and is vacant) and the vendor and I have agreed monies to be paid. This tenancy should only last a month and would be significantly less than my current rental. The vendor is going to draw up a contract which states that I am renting from him; he will sell it to me for x amount as soon as we possibly can and I will buy it. I was wondering if anyone has any experience of this and can advise if this is a good idea or not? Obviously I don't want to end up homeless, hence the wording of the contract re him selling it to me at x price. As I say, the estate agent suggested it, but is now saying that they won't witness the signing of a contract and it is between me and the vendor.

Any advice/thoughts/experience gratefully received.

Many thanks

System

If I was the vendor then I wouldn't touch this with a bargepole. There are so many things that can go wrong from the vendor's point of view

Pandilex

I wouldn't recommend it. What happens if things go wrong in the purchase? Or they decide not to sell, or they decide to sell to someone else, or there's an issue with some legal technicalities? What if they put the price up £10,000 after you move in? It sounds like a potential nightmare of a situation. As with all house purchases I would never commit until the contracts are signed and exchanged.

agrinnall

As with the many other threads asking this question from both the vendor and buyer's viewpoint, the cards are all in the buyer's hand and there's little to recommend it to the seller.

DRP

Our vendors did this when selling their house to us. They rented their new house for a matter of weeks and then bought it.

As others have stated, there *are* potentially massive consequences for the house owner, but if the 2 parties trust each other, then the probability is low...

Either way, the risk is to the vendor, not the buyer...so why not?

LandyAndy

cdh wrote: »

Hello everyone,

Due to extremely slow solicitors, particularly the vendor's, we are behind schedule in my flat purchase. The estate agent suggested the possibility of my renting it from the vendor (it was previously rented out and is vacant) and the vendor and I have agreed monies to be paid. This tenancy should only last a month and would be significantly less than my current rental. The vendor is going to draw up a contract which states that I am renting from him; he will sell it to me for x amount as soon as we possibly can and I will buy it. I was wondering if anyone has any experience of this and can advise if this is a good idea or not? Obviously I don't want to end up homeless, hence the wording of the contract re him selling it to me at x price. As I say, the estate agent suggested it, but is now saying that they won't witness the signing of a contract and it is between me and the vendor.

Any advice/thoughts/experience gratefully received.

Many thanks

:eek: Not likely to be many loopholes and plain errors in a contract like that, are there?

tillica

Thanks for all your responses. You've outlined what I was thinking. My main concern is the putting up of the price/the vendor suddenly deciding not to sell, which is why I want that in the contract.

Yes, the vendor is drawing the contract up, but I'm going to have it checked by my solicitor.

Thanks again

LandyAndy

cdh wrote: »

Thanks for all your responses. You've outlined what I was thinking. My main concern is the putting up of the price/the vendor suddenly deciding not to sell, which is why I want that in the contract.

Yes, the vendor is drawing the contract up, but I'm going to have it checked by my solicitor.

Thanks again

Who will probably charge you a fair whack to tell you not to sign it.

princeofpounds

It's not such a big deal for a buyer; it's just an ordinary rental contract. As long as they are aware that the exchange is not binding yet.

The seller gives up vacant possession, which can be more problematic.

I doubt the buyer's solicitor will tell them not to sign it, if they want to.

tillica

"The seller gives up vacant possession, which can be more problematic."

Thanks for your response. Please can you explain why it could be more problematic? Thank you.

Annie1960

Why are the solicitors being so slow? Perhaps there is some nasty clause in the lease or something. Do you know the reason for the delay?

If you do decide to go ahead with signing a contract renting from the vendor, make sure it is a proper contract drawn up by a solicitor. If the vendor's solicitor writes it, get it checked by yours. I would not sign a contract written by the vendor.