Contract exchanged - safe to buy interior?

Mlasso

Thank you everyone for so many answers, much appreciated. I will listen to the advice of majority wait with interior purchase then. Regarding your previous posts:

@babyblade41 I get the point, however I am not too concerned - it is what it is. I did get confirmation that notice has been served and it will eventually get sorted. It is not ideal but I believe that there is very small chance of this scenario happening (tenant not wanting to leave) since he seems like normal person.

@TripleH thanks for advice!

@GrumpyDil yes, there is a set date, I mentioned it on previous page. Date is set 4 days after tenant's notice expires. Notice has been served prior to exchange. Solicitor did know about the tenant and he confirmed notice. He also did put it as additional point in contract, that completion is subject to seller providing vacant posession.

I will ask my solicitor to confirm what will happen if tenant doesn't leave, thanks for that advice.

@SusieT thanks, as mentioned above, completion is subject to vacant property. I did have a viewing (obviously) prior to purchase, but I also had a viewing between my offer being accepted (and tenant receiving notice) and exchange. Therefore, tenant was willing to provide us with access after he received notice and he was quite "normal" about it. He also asked if he can take some furniture with him (he saw us taking measures and I told him we will buy new furniture) since he saw an empty flat he would like to rent. 

@UnderOffer I am not sure what do you mean by confirmed in another call? I did ask my solicitor to exchange asap (since I wanted to lock the deal as I believe that price is good - that is why I was worried that seller can change his mind and that is why I started the topic). My solicitor was aware of tenant and seller had his solicitor as well (our solicitors exchanged quite a few emails). Agent who showed us the property confirmed in email that notice has been served about 10 days before exchange. Both solicitors are aware of tenant and confirmation of exchange came from my solicitor, also I sent funds to my solicitor's client account.

Titus_Wadd

Doesn't the furniture in the house belong to the landlord? I'm not sure you can give him permission to take anything away, that would be for the landlord to agree with the tenant.

I have a bad feeling about this.

Flick85

I think people’s concern for your situation with the tenant here… is where is the tenant going to move to?

They aren’t going to move out of this property with nowhere to go, and it’s not easy to get rental properties at the moment. So, they might well hope to move out on the date it specifies in your contract… but whether they will be able to or not is another matter.

canaldumidi

Your concern, and the risk, is whether you get vacant possession and Complete on the agreed date, or whether the tenant remains (as he is legally allowed to do) and your seller fails to Complete (due to no vacant possession).

In the former case, fine - order you furniture, move in, and open the wine

if the latter comes to pass, what will happen to the furiture you've ordered and paid for?

Exchanging with a tenant in occupation is always a risk, however minimal.

hazyjo

The OP seems under the impression only dodgy people stay beyond notice, and they're easily identifiable.

Trying to reiterate, it is NOT a criminal offence to stay. It is also perfectly LEGAL. Absolutely nothing dodgy about it.

Good luck. Hopefully all will be fine 🤞🏼

Mlasso

Thanks everyone for responses, I will come back with the update once I have more info

UnderOffer

@UnderOffer I am not sure what do you mean by confirmed in another call? 

What normally happens is your solicitor would telephone you to ask for your permission to exchange, they would then communicate with all parties in the chain to agree exchange too, your solicitor would then follow up again in another call to you later that day to confirm exchange had happened and give the agreed completion date. That’s why I indicated you would receive another call. 

Mlasso

@UnderOffer we did exactly that, just over the email. I received email from sellers solicitor (I was in cc) where he said that his side is ready, I then exchanged a few emails with my solicitor, made the transfer and we exchanged, I received email confirmation from my solicitor.

To be clear, I do not think that there is any chance that there is any scam or anything, solicitor's office is in Mayfair (London) and I got recommendation for him, it is more likely that my poor knowledge is playing big part in me representing the case wrong by using vague words.

MalMonroe

Mlasso said:

Thanks for responses!

@user1977 you are correct, it is technically seller's agent (paid by seller to sell the property). I do have my solicitor who went through the deal.

@Slithery it is not a new home, it is owned by private individual (seller in this case) and has tenant inside (who is renting). I do have exact completion date which is 4 days after tenant moves out (he is under notice now, I just don't want to put exact dates). Completion date was mutually agreed before exchange. Tenant should clean the property as this is part of his tenancy agreement and then we (my wife and I) will get the keys and move in.

With this additional info, what would be the answer to my 1st and 3rd question?

Thanks!

Hi, this really is a bit worrying. As others have said, if you have exchanged contracts and agreed a completion date but the tenant is still in situ, what guarantee is there that the tenant is actually going to leave? What happens if the tenant does not leave on the due date? Will you then have to take over from the vendor and become that tenant's new landlord? Or will you be able to delay completion?

Can you have a word with your solicitor about this? 

I also do hope that everything works out for you but I'd really be hoping that the tenant is as upstanding as you believe. 

Obviously, it would be unwise to purchase anything before the property has been vacated.

JuanBallOfWimbledon

I hope this all ends up going to plan, OP. But can I suggest you call your solicitor and have a conversation with them? Write down all the concerns that have been mentioned here, and ask them about it. 

You seem unconcerned about something that is pretty concerning (as you can see from all the responses here from very experienced people). Staying past the end of a notice period isn’t something that only a certain ‘type’ of person does. It’s not dodgy or ‘against the rules’, it’s perfectly ok to do that. In fact, it’s often necessary - especially right now when finding and being accepted for a rental, in a mostly sparse and highly competitive market, is brutal. I’m a professional, middle aged, ‘normal’ man, who works in a well paid and respectable job which is not too dissimilar to this tenant’s job. I have twice had to stay past the end of a notice period, and that was before things got so crazy on the rental market. Him working in banking, appearing ‘normal’ and promising you the Earth means nothing. 

You really need to clarify exactly what you’ve committed to, what your rights and protections are, and have a plan for the worst case scenario. You need to make sure you’re protected here. Wanting to purchase a tenanted property is a pretty common theme on this forum, and people always strongly advise against it. This is the first time I’ve heard of a solicitor allowing exchange to happen in this situation, without vacant possession. 

Like I said, hopefully it all goes to plan and you’ll be in your new home, happily celebrating, on schedule. You just need to be sure you know precisely what will happen if things go awry. Best of luck with it all 👍🏻