Seller wants to complete the sale but stay in the house

jim_walton

Thanks Greatcrested. It was my full intention to let a letting agent look after everything it’s just the vendor wanting to stay that had complicated things.  

greatcrested

In that case

Post 9: Letting agents: how should a landlord select or sack?

You still need to understand your responsibilities. If the agent makes a mistake or misses something, it is you who will suffer the financial or legal consequences....

lookstraightahead

phoebe1989seb said:

I know most people think it's a bad idea, but it does happen and not always with unwelcome results as some people can be trusted 😮

When we sold our last house our buyers had a few issues and although they were buying under an auction contract - sale agreed post auction - they couldn't exchange on the agreed date. In addition we were buying a repossession (cash buyers and didn't have a mortgage on the house we were selling, although did need that money to buy) and there were a few delays with that too.

In the end our sale was ready to exchange/complete before our purchase. Our - very considerate - buyers offered for us to stay in our old house post completion for three weeks. Just a gentleman's agreement with no tenancy/contract drawn up. Iirc we paid them £100 PW (large four bed detached house) which is what they suggested. 

We were moving our (very many) worldly possessions into storage ahead of a lengthy renovation project and we began the removals once exchange had taken place (completion was a couple of days after exchange), so that by the time the three weeks were up it was more or less just us and a car full of small stuff to go. Being honest people, we stuck to our side of the bargain and parted from our buyers on very good terms......

We even shared a bottle of champagne with them 

It's not always doom and gloom!

It's not always legal either. It's like someone driving someone else's car, but worse, without a licence.

jim_walton

Thanks again Zonifer.  You’ve filled me with renewed hope.  

jim_walton

Thanks GreatCrested. It’s really difficult to know what the right thing to do is. One post I’m all for it and the next post I’m ready to put the brass back in the bank.  

jim_walton

Thanks all for your replies and help it is much appreciated I have received an email from my solicitor who is obviously working late tonight 
“ Furthermore, we have now been notified that the property is not being sold with vacant possession so will need to amend our contract we will also need to complete an assured tenancy agreement to accompany the contract.”. 

GDB2222

jim_walton said:

Thanks all for your replies and help it is much appreciated I have received an email from my solicitor who is obviously working late tonight 
“ Furthermore, we have now been notified that the property is not being sold with vacant possession so will need to amend our contract we will also need to complete an assured tenancy agreement to accompany the contract.”. 

As @SDLT_Geek said, it is covered by the FCA, and what you are planning is illegal. You are not authorised to make this transaction.

I think you should not instruct your solicitor to go ahead, even if they are prepared to draw up the documentation for you. 

Instead, you need to find out what your vendor is trying to achieve, and then help him to achieve that without breaking the law.

bpj

GDB2222 said:

As @SDLT_Geek said, it is covered by the FCA, and what you are planning is illegal. You are not authorised to make this transaction.

The wording in the link is a little opaque! From my reading it is saying that a sale contingent on a rent back agreement is only allowed if the provider is an "authorised" (or "exempt") person, which presumably the OP is not. Can anyone explain what the concern of the FCA is here? Why should this activity be regulated in this way?

macman

OP should bear in mind that, should the potential tenant's plans change, then the OP will not simply be able to regain possession in 6 months at the end of the STA. Notice required is currently 6m, and the court backlog once that expires will be such that he is unlikely to get a possession order and evict much before December 2021.

macman

jim_walton said:

Thanks Zonifer.   So did your buyer buy with out vacant possession?  If so then Illy go down the same route I think.  Also I suggested £100 a week because he offered to pay half the Stamp Duty.  

It's presumed that the sale price is then over £500,000? Because, it it's not, then there will be no SDLT payable anyway, as long as you complete before 31/3/20.