Sellers can’t complete as tenants are refusing to move out of home they’re moving in to.

ltodd94

Just looking for a little advice. 

We were all set to complete on this property on the 24th April. Sols are waiting to send off certificate of title and lender is ready to transfer funds. 

I have just had communication from the seller that the tenants in the property they were due to move into are refusing to leave. Originally we were told when putting in our offer that there was no chain, they were moving in with family and that once all searches were complete we were good to go. Now that they are saying they can’t move out and therefore we cannot complete. We will now be having to pay extra rent on the property we’re currently in. I was just wondering if we would have a leg to stand on to try and claim the extra expenses and also put pressure on the seller to find other accommodation so our sale can go through? 

davidmcn

Have you exchanged contracts? If not, then no you have no right to recover expenses. Are your sellers buying the next place or moving in as tenants?

Thrugelmir

Given the current circumstances. Understandable there's a reluctance on behalf of the tenants to move. Practical considerations of moving need to factored in as well. You won't have a mortgage to pay this should offset at least part of the additional rent you wil pay. In the bigger scheme of things a few weeks is neither here nor there. 

wesleyad

As David says, if you have exchanged then yes you can recover your expenses.

If you haven't then the only way is to kick up a fuss and start threatening to pull out. Of course they could call your bluff, so there's a risk.

Just to add, given the current circumstances you may find they simply cannot find a way to move as the whole rental market has pretty much stopped (you will struggle to get any viewings etc)

Comms69

ltodd94 said:

Just looking for a little advice. 

We were all set to complete on this property on the 24th April. Sols are waiting to send off certificate of title and lender is ready to transfer funds. 

I have just had communication from the seller that the tenants in the property they were due to move into are refusing to leave. Originally we were told when putting in our offer that there was no chain, they were moving in with family and that once all searches were complete we were good to go. Now that they are saying they can’t move out and therefore we cannot complete. We will now be having to pay extra rent on the property we’re currently in. I was just wondering if we would have a leg to stand on to try and claim the extra expenses and also put pressure on the seller to find other accommodation so our sale can go through? 

Sort of. These claims go up the chain, so their vendor would cover their costs, which would cover your costs.

Those costs may or may not include rent.

(this assumes you have already exchanged!)

davidmcn

Comms69 said:

ltodd94 said:

Just looking for a little advice. 

We were all set to complete on this property on the 24th April. Sols are waiting to send off certificate of title and lender is ready to transfer funds. 

I have just had communication from the seller that the tenants in the property they were due to move into are refusing to leave. Originally we were told when putting in our offer that there was no chain, they were moving in with family and that once all searches were complete we were good to go. Now that they are saying they can’t move out and therefore we cannot complete. We will now be having to pay extra rent on the property we’re currently in. I was just wondering if we would have a leg to stand on to try and claim the extra expenses and also put pressure on the seller to find other accommodation so our sale can go through? 

Sort of. These claims go up the chain, so their vendor would cover their costs, which would cover your costs.
Those costs may or may not include rent.
(this assumes you have already exchanged!)

And that the other transaction is a purchase, as I queried.

Comms69

davidmcn said:

Comms69 said:

ltodd94 said:

Just looking for a little advice. 

We were all set to complete on this property on the 24th April. Sols are waiting to send off certificate of title and lender is ready to transfer funds. 

I have just had communication from the seller that the tenants in the property they were due to move into are refusing to leave. Originally we were told when putting in our offer that there was no chain, they were moving in with family and that once all searches were complete we were good to go. Now that they are saying they can’t move out and therefore we cannot complete. We will now be having to pay extra rent on the property we’re currently in. I was just wondering if we would have a leg to stand on to try and claim the extra expenses and also put pressure on the seller to find other accommodation so our sale can go through? 

Sort of. These claims go up the chain, so their vendor would cover their costs, which would cover your costs.
Those costs may or may not include rent.
(this assumes you have already exchanged!)

And that the other transaction is a purchase, as I queried.

Good point, but the landlord may still be liable for costs if a contract was formed.

AdrianC

I'd guess you haven't exchanged yet, even on the thin info you've given. You're still two and a half weeks from exchange, and no sane or competent solicitor would let you exchange prior to the vendor having vacant possession - precisely to avoid this mess from developing.

I presume the vendor has given the tenants sufficient, valid notice...? Even if they have, and it's expired, their next step is to seek possession through the courts - and that takes months at the best of times, but is on hold until Covid's over.

Unless the vendor persuades them to move, you aren't moving.

iampetesmith

This could drag on and on. Suppose they stay put until things get back to normal and they can actually move somewhere, that would be the best you could hope for. The other thing that can happen is these tenants play the game for long after that, so they end up having to be evicted by bailiffs after a long court battle. This will mean you're in for a long wait before you can even exchange contracts as no solicitor should exchange until the property is empty.

For now, you can only wait. Firstly, wait until the pandemic is over so you can try and work out if these tenants are planning to move out any time soon. You'll also find it hard to find another property until this is over as everything has ground to a halt for everyone, so it's not worth pulling out either.

Stick in there and consider your options when business starts up again. If it looks like the tenants are going nowhere and will stay until they're booted out, then you can either wait for this which could be a while or pull out and find somewhere else. If they move out as soon as they can, then stick with it and you'll exchange when there is vacant possession.

ltodd94

Just to clarify, we haven’t yet exchanged however we have transferred deposit and paid sols fees. Main concern now is that we won’t be able to move in before the mortgage agreement expires and will not be able to secure a new one as we have put down 5% but lenders are now asking for anywhere up to 40%. 

AdrianC

ltodd94 said:

Just to clarify, we haven’t yet exchanged however we have transferred deposit and paid sols fees.

And that's your key... You've transferred the money to your solicitor, ready to transfer if/when you exchange. But if you haven't exchanged yet, then either side can just pull out for any or no reason.

Your solicitor wouldn't have allowed you to exchange without the vendors being able to confirm vacant possession. If the tenants want to dig their heels in, they'll still be there in Autumn. Their landlord cannot force them out (legally) without a court granting possession - and cannot launch a possession hearing at the moment. The backlog when they can again will be huge.

It's all in the tenants' hands. And, no, you cannot claim for any compo or expenses from anybody.