Re: advice on exchange of contracts

AdrianC

firsttimebuyer2017 wrote: »

Our solicitor has informed us of their terms, so l am assuming the vendor's solicitor has raised no objections.

Then the solicitor is as big an idiot as his client...

KiKi

You're a first time buyer who (understandably) isn't aware of how these things work. So given your inexperienced position, I'd suggesting reading this: do not exchange until the tenants are out.

Then read that ten more times!

Once you've exchanged you're committed to buying the property. If the tenants don't leave then your vendor will have broken the contract, and depending on what happens next, you're either buying a buy-to-let and have the legal responsibility to manage the property (and legal costs of getting the tenant out) or you end up in a huge legal mess which is the seller's responsibility.

It's just not worth it - just don't go there. It is MORE than perfectly reasonable to not exchange until the tenants are out. Moreover, it's the norm. Don't believe what the EA or the vendor's solicitor tells you - they just want the property sold.

KiKi

Cakeguts

firsttimebuyer2017 wrote: »

Thanks for all input so far.

Our concern is we do exchange and then get drawn into delays and stalling while the vendor continues to accrue rent from the tenant. I am mindful of all the feedback regarding the hassle and we definitely don't want to be involved in legal disputes.

We had the offer accepted two months ago but were not informed the rolling tenancy ended this month.

We had intended to commence searches after receiving outstanding certificates.

Would it be considered reasonable to instruct our solicitor to tell them we will only exchange if vacant?

Thank you.

Go back to the beginning and think this through now you have all this extra information.

You go to view a house that has tenants living in it. This is not the same as viewing a house that is either vacant or owner occupied in that you are not guaranteed vacant possession which is what you need for your mortgage until the tenants have left. The tenants don't have to go at the end of their contract or at the end of their notice they could still be there in 6 months or how ever long it takes for the case to get to court.

The fact that the tenants are still living there means that you don't really know what you are buying. You don't know what condition the house will be in when they leave. They don't own the house so they don't need to leave it in a good condition for you. It could have a lot of damage when they go so what do you do then? Lower your offer or buy it at the same price and pay for the damage to be repaired? For this to be a fair transaction you need to view the property after the tenants have left before you make the offer so already you have offered on something that might not be what you thought it was.

The landlord knows that you are first time buyers they may be relying on that because they may assume that you don't know what you are doing which is why you have been given all the misleading information about rental contracts, notices and exchanging without the property being vacant first. This is not a good start to a property purchase because it makes it look as if the seller is going to try to cover up problems. (They are already doing this.)

This cannot be the only property available in your area? It may appear to be a bit cheaper than many others but this could be because the seller anticipated selling to another buy to let investor which is why the tenants are still living there.

You cannot buy this house at the moment because it is not vacant so it would be a really good idea to start to look for something else. Try to look for a house that is lived in by the owner or is vacant not one that has tenants still living there.

NiaS90

We are in a similar situation buying a house with tenants currently in the property. I have viewed the property the tenants are fully aware they are to leave after the 2 months ( not to say they will) I won't be exchanging contracts until i have viewed the property again. We have payed for search etc

6th June there due to vacate & we're hoping to exchange and complete soon after.

Fingers crossed it all goes to plan!

firsttimebuyer2017

Hi all,

We have instructed the solicitor that we will not exchange without vacant possession. We really want the sale to go through but the ambiguity over the exact terms of the tenancy (the EA still does not know how much notice they will be given) and also the risks you all point out have made up our minds.

Hopefully they will resolve this and we can progress. I will post the final outcome.

Thank you all for your valuable advice.

firsttimebuyer2017

Hi all,

The vendor has refused to agree to exchange with vacant possession - apparently on the advice of their solicitor who feels it is prudent to keep the tenants in the property at this point.. Our solicitor has advised not to proceed. I couldn't find a single site which considered exchange with tenants in situ good practice.

As ftb we were under the impression the acceptance of an offer meant the vendor works with you and wants the sale. They may come back to us and agree vacant possession now we've stated our terms, but l am doubtful.

The only thing now is the legal costs we have incurred.

AdrianC

The legal costs are your problem... Either party can pull out for whatever reason before exchange.

Thrugelmir

firsttimebuyer2017 wrote: »

apparently on the advice of their solicitor who feels it is prudent to keep the tenants in the property at this point..

That sounds like the vendor talking not their solicitor.

G_M

Walk away. Now.

OK - you've put money into this already, but better to write it off and start afresh than end up with all sorts of problems down the line, which I foresee.

Treat it as a learning experience - you now know a lot more about tenanted properties.

dlmcr

In case any more confirmation of this was required - pull out now. I know it is hard when you have spent money and have some emotional investment and especially hard if you are in a fast rising area but this is nothing compared to what your problems will be if you exchange with tenants still there and are unable to complete with vacant possession.