Contract exchanged - safe to buy interior?

user1977

MalMonroe said:

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!

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?

The latter (unless there's something particularly weird in the contract). It is a standard requirement of completion that vacant possession is provided by the vendor - if they can't do that then completion doesn't happen and the vendor is in breach of contract.

The risk is mainly for the vendor rather than the buyer - the main difficulty for buyers is the practical one if this only becomes apparent at a late stage and the buyer is already committed to moving out of their last place. But where the buyer is a FTB (as here) it's likely to be not so drastic a problem.

I agree the OP needs to clarify with their solicitor what the contract actually means, as they don't seem to have understood what they were getting themselves into.

Ath_Wat

Mlasso said:

@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.

Nobody is suggesting it's a scam.  It's quite possible that everyone, including the tenant, hopes that they can get moved out in time for completion.

However, the point people are making is what if they can't.  Even if they have somewhere lined up now, which you don't seem to know, what if that falls through?  Then, quite legally and properly, they will stay where they are until they can find somewhere else.  And that could take a long time.

babyblade41

I'm sure things will turn out OK, but please don't do this again it is extremely risky & quite honestly your solicitor should have advised against this .

The ideal way to go is just before exchange a quick look round the property to make sure it is empty & in reasonable order , tenant should vacate before exchange happens not after unless this is sold with tenant in situ and is an investment property 

saajan_12

babyblade41 said:

I'm sure things will turn out OK, but please don't do this again it is extremely risky & quite honestly your solicitor should have advised against this .
 

I think we need to be a bit more rational and realistic here.
Tenants don't legally have to leave by the end of a LL's notice, no matter how 'normal' they look, so it IS a very real risk that they stay on. 

However if that risk materialises, then you also have to look at the effects -> vendor will be in breach of contract, buyer will be unable to move in, face the hassle of finding accommodation, tracking expenses, upheaval of more than one move. The actual costs can be claimed from the vendor, and likely to actually recover the money as the vendor owns a property (depending on how large the mortgage is). 

So if you're someone who will be more affected by the upheaval (eg high stress job / school run schedule, can't front the money for hotel / storage / legal until reimbursed by vendor, long chain behind, can't move with family easily, have to move out of previous accommodation that day eg served notice on rental, etc) then it might be something you want to avoid. However if not, then since the actual costs would be claimed by the vendor, its not actually THAT risky you'll end up with significant negative effects so as to "never do it again". 

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babyblade41 said:

I'm sure things will turn out OK, but please don't do this again it is extremely risky & quite honestly your solicitor should have advised against this .

The ideal way to go is just before exchange a quick look round the property to make sure it is empty & in reasonable order , tenant should vacate before exchange happens not after unless this is sold with tenant in situ and is an investment property 

This is the ideal way, but even if exchanging with tenants in situ, I'd still try to get a viewing just before exchange, and take pictures so if the tenants do cause damage on their way out, then you can decide whether to complain / claim from the vendor post completion. Since you've exchanged, do that ASAP, and hopefully you'd be able to argue it wasn't worse back when you exchanged. 

RAS

Have you got insurance arranged, OP?

hazyjo

Wanted you to see this current thread.

Very common, and what we will all advise if a tenant needs another week, month, whatever after being served notice...

https://forums.moneysavingexpert.com/discussion/6355254/being-evicted-before-completion#latest

Mlasso

Thanks once again for all the feedback. As mentioned, I am not too worried about getting my funds back or having significant loss, but that said it is obvious that I made the mistake and that I should be very happy if it all goes well

I do have insurance.

@hazyjo thanks for the topic, I now understand fully what I could potentially get myself into. 

I need help in another case then. This is the current state of events:

- Tenant from my future property is supposed to leave on 4th of june
- Completion is supposed to be on 8th of june (subject to vacant posession)
- My current rent agreement (where I live now) is until 18th of June. 

My rent contract was signed for 18 months, and had 2 month notice period. I didn't give notice yet because no one asked me about it and my original plan was that since contract is ending anyway on 18th of June I will have some days to move to my new home and then leave the keys and leave my rental property. 

Now, since so many of you helped me with this topic, I understand situation better and need to think about my position more than I originally thought. 

I would prefer to be fair to the landlord and not stay after 18th of June, but since I made a mistake there is a now a real possibility that I might need to do stay longer.

Can you please let me know what would be the best situation for me moving forward? Should I:

- Just wait as much as I can without sending any info to my landlord?
- Write situation honestly (which will probably end up with me receiving S21) and then try to stay as much as needed?
- Say that I would like to stay in property on a rolling basis (without signing any contract) and then if I Complete on 8th of June I let the Landlord know that I will not be staying after 18th of June (rental contract end date)?

From what I understand so far, last option is the best for me in theory, but it is also the most rude one towards the Landlord. Is this correct?

Finally, if he issues S21 then, and if I leave within 2 months (so no court is involved) will there be any record that I broke any rues? I will need to apply for British Citizenship in a few months and i don't want to have any court records.

Thanks!

MaryNB

Mlasso said:

Thanks once again for all the feedback. As mentioned, I am not too worried about getting my funds back or having significant loss, but that said it is obvious that I made the mistake and that I should be very happy if it all goes well

I do have insurance.

@hazyjo thanks for the topic, I now understand fully what I could potentially get myself into. 

I need help in another case then. This is the current state of events:

- Tenant from my future property is supposed to leave on 4th of june
- Completion is supposed to be on 8th of june (subject to vacant posession)
- My current rent agreement (where I live now) is until 18th of June. 

My rent contract was signed for 18 months, and had 2 month notice period. I didn't give notice yet because no one asked me about it and my original plan was that since contract is ending anyway on 18th of June I will have some days to move to my new home and then leave the keys and leave my rental property. 

Now, since so many of you helped me with this topic, I understand situation better and need to think about my position more than I originally thought. 

I would prefer to be fair to the landlord and not stay after 18th of June, but since I made a mistake there is a now a real possibility that I might need to do stay longer.

Can you please let me know what would be the best situation for me moving forward? Should I:

- Just wait as much as I can without sending any info to my landlord?
- Write situation honestly (which will probably end up with me receiving S21) and then try to stay as much as needed?
- Say that I would like to stay in property on a rolling basis (without signing any contract) and then if I Complete on 8th of June I let the Landlord know that I will not be staying after 18th of June (rental contract end date)?

From what I understand so far, last option is the best for me in theory, but it is also the most rude one towards the Landlord. Is this correct?

Finally, if he issues S21 then, and if I leave within 2 months (so no court is involved) will there be any record that I broke any rues? I will need to apply for British Citizenship in a few months and i don't want to have any court records.

Thanks!

Your contract doesn't end on the 18th of June unless you move out, only the fixed term ends. If you stay at the property and haven't given notice your contract continues automatically as a periodic tenancy.  You do not have to say anything to the landlord at all. 

Is a period tenancy mentioned in your contract? If so it's a contractual periodic tenancy (CPT) and the notice after the 18th of June is as per the contract. If it's not mentioned its a statutory periodic tenancy and the notice period is equivalent to one rental period (one month that lines up with the tenancy dates if you pay rent monthly).

Do not hand in notice until you have confirmed the property is vacant - visit the property to confirm it with yourself, don't rely on the agent telling you.

It's not illegal to stay beyond an S21. You are perfectly entitled to stay at the property until a court appointed bailiff turns up and boots you out.

Mlasso

Thanks. CPT is not mentioned in my rent contract.

I am paying rent for 6 months upfront based on my current contract, does it mean that if I stay at any moment after 18th of June (for example fro 5 days only), contract would be for 6 more months from when it originally ended?

themainman84

Slightly off the current topic but in your original post you asked if you should start buying furniture. Under no circumstance buy this on credit/finance. Mortgage companies can and often do run a credit check between exchange and completion and if new borrowing is detected and it pushes you over affordability then there is the possibility of the offer being retracted. Not trying for doom and gloom, just wanted to make you aware. Best of luck with the move