Can a buyer rent out a property before exchange and how can I resolve this dispute?

mivvin

Ok, so I'm having particularly bad luck selling a flat and buying a house.
Found a buyer, then had an offer accepted on a house, then buyer #1 pulled out.
Found buyer #2 then they pulled out.
Found buyer #3, a first time buyer in December. However, he has decided at the 11th hour to let it, and is trying to advertise it privately and show tenants around now, even though we haven't exchanged contracts.

We've been ready to exchange for 3 weeks now but every proposed completion date so far seems to have gone unacknowledged.

I've said no twice to showing tenants round but he tried again yesterday to arrange a viewing for Saturday. In an attempt to negotiate, I've suggested he could do viewings once we've exchanged contracts and agreed a completion date.

All the while the people I'm buying from are getting more and more jumpy, understandably as my offer was accepted in early December.

Has anyone else been in this situation and if so, how was it resolved?

I'm thinking of putting my property back on the market but this will probably prompt the people I'm buying from to do the same, right?

marksoton

mivvin wrote: »

Found buyer #3, a first time buyer in December. However, he has decided at the 11th hour to let it, and is trying to advertise it privately and show tenants around now, even though we haven't exchanged contracts.

We've been ready to exchange for 3 weeks now but every proposed completion date so far seems to have gone unacknowledged.

Tell the cheeky !!!!!! to put his money where his mouth is and exchange and complete or it's back on the market.

And remind him he can't advertise something he doesn't own.

mivvin

The other problem I'm having is that this communication is running between myself and the buyer via the estate agent.

Would I be better refusing any further direct contact and advising that any further queries go via our solicitors?

AnotherJoe

No you'd be better off talking directly to him, stating he only gets to show people round after exchange, no visits until then. If he tries to negotiate, decline his offer and put it back on the market

Bluebirdman_of_Alcathays

mivvin wrote: »

The other problem I'm having is that this communication is running between myself and the buyer via the estate agent.

Would I be better refusing any further direct contact and advising that any further queries go via our solicitors?

Yes! EA's are unqualified goons who just want the sale to go through at any cost, all contact through legal channels should be the way forward once an offer is accepted.

Personally I would be telling him to do one, chances are he hasn't got a BTL mortgage, and won't be telling the taxman about his little scheme. None of these are strictly your problem, but why bother with scrots like this? As you've managed to get 3 buyers in quick succession, chances are you'd find a 4th who'd actually appreciate the house?

mivvin

AnotherJoe wrote: »

No you'd be better off talking directly to him, stating he only gets to show people round after exchange, no visits until then.

Yes, I've now stated that, albeit through the estate agent but that should be clear to him now.

AnotherJoe wrote: »

all contact through legal channels should be the way forward once an offer is accepted.

Yes I think I'll tell the Estate Agent that tomorrow, when they reopen.

AnotherJoe wrote: »

chances are he hasn't got a BTL mortgage, and won't be telling the taxman about his little scheme.

I think you're absolutely right. As it happens, I have told my solicitor everything regarding the situation, but he hasn't really responded to this information yet. He really ought to be querying it with the buyer's solicitor (at which point everything might unravel, I guess).

Anyway, thanks all for your help. Who knows, maybe he'll suddenly see sense and exchange contracts next week.

davidmcn

marksoton wrote: »

he can't advertise something he doesn't own.

I don't see why not.

mivvin

davidmcn wrote: »

I don't see why not.

Interestingly, the estate agent thinks that he can, but only if I give my permission, which, to date, I have not.

marksoton

davidmcn wrote: »

I don't see why not.

Come now David, you know exactly what i meant...

davidmcn

mivvin wrote: »

Interestingly, the estate agent thinks that he can, but only if I give my permission, which, to date, I have not.

Obviously he can only arrange viewings with your permission, but I don't see what right anyone would have to stop him advertising. It's his risk.

mivvin

Just as an aside, I've been told twice now (once by solicitor, then by Estate Agent) that all parties are ready to exchange. What would prevent the exchange? Can it only be my buyer burying his head in the sand or are there other factors?

I know the people I'm buying from are keen to sell as it's a BTL investment owned by their late father which they just want rid of. They've no cause to delay exchange / completion and nor have I (obviously).