Vendors, not buyer, want to exchange with tenant in situ

paddy's_mum

You mention a mortgage offer.

The purchase is not going to happen unless you lie to the mortgage company.. and they will not allow you to put them into the minefield of becoming embroiled in the situation you describe.

davidmcn

mrginge wrote: »

It may also of course be the mortgage lenders decision (through the solicitor who is employed to protect their interest).

They won't allow completion to happen without vacant possession - exchange of contracts is the purchaser's risk.

Hoploz

Tell the vendor the only way to do this is for you to exchange and complete on the same day.

You should not exchange contracts without knowing that you can complete. If the tenants remain then you cannot complete (lender's rule)

I can't see the benefit to the vendor of not getting the tenants out beforehand. What reason have they given? They should have served notice long ago. The only reason I can think of is that they don't want to be out of pocket between exchange and completion, in which case there's no reason they shouldn't agree to doing it on the same day.

If they are concerned you may pull out before exchange and leave them with no tenant, then this is unfounded. You can agree to exchange on the same day as the tenants vacate, following an inspection by you of course. But you could arrange it all to happen. With completion the next day, or a week later, or whenever you agree.

If you go ahead it is a minefield. It is unreasonable of them to ask you to do this.

Is there an EA? Maybe they can explain to them it isn't the done thing. The best people to explain it in no uncertain terms is of course the solicitors. I bet your solicitor is advising you against this. You should listen to them.

fairy_lights

morreau wrote: »

I am going to dig into my heela in. I will have to find another way to appease the vendor that I am committed to the sale.

Thanks

You don't need to appease the vendor, nor do you need to prove that you're committed. Exchanging with tenants in the property is a terrible idea for a number of reasons and I'm sure the vendor is aware that it's not going to benefit you in any way - if anything, they are the ones who should be appeasing you.

King_Slayer

Don't do it!! Not worth the hassle if you then have an issue with tenants leaving or damaging peoperty before completion. I know the liability would lay with the vendor if the contract does state 'vacant possesion' however the stress and inconvenience won't be worth it - IMO.

KRB2725

Do you know if the vendors solicitor is aware of their plans? I would think that any solicitor worth their salt would be advising against this? Have you told yours?

morreau

Their solicitor has instructed mine that they wish to proceed before the tenants are out, which why I was baffled. I have asked why and they are keen to box things off and have a good relationship with their tenant. Even that considered, it sounds like their solicitor should still not be allowing this to happen.

maninthestreet

Presumably you have applied for a residential mortgage for this property, so will have immediately breached your mortgage T+Cs at completion, as you will have a tenant living in the property??

Ulfar

As others have said don't do it.

Not with exchange and completion on the same day, what if completion goes ahead and you get to the property to find the tenant in place. The mess would be horrendous.

You could include penalty clauses in the contract, but you are still going to have to enforce them.

Do you have a BTL mortgage, I presume not in which case you need vacant possession.

If the vendor and their tenant are on such good terms then they have already given notice and you will be able to exchange once they have left. I somehow get the feeling this is not the case.

fairy_lights

What?! Their relationship with their tenant is so important to them that they're willing to jeopardise a house sale rather than serve notice? is the tenant even aware that it's not being sold as a buy to let and that they will need to leave?