Tenant inside - how to spot whether seller has problems getting tenant out

F37A

Hi 

I feel these properties quite risky to take on as no guarantee tenant will exit.

How can a buyer have certainty that the tenant would exit the property on time without buyer incurring too many costs

suppose you can see if any disputes arisen but problem tenant often hidden to buyer. 

Thanks

Sandtree

Have you spoken to the Tenant?

Even if you didn't have exit concerns I'd personally be wanting to as more likely to get the warts and all assessment of what its like to live there. I know in the last place we were in that was sold from under us we were honest when viewers asked us about any issues like mentioning the in floor slab storage heating was broken in two rooms but that for us it was warm enough without them etc.

People did ask our plans and we said we were house hunting to buy ourselves (or that our offer had been accepted etc) as we bought and left long before the property sold (he moved in short term tenants after us as rental was his main income at the time and the LL himself was in a rental)

user1977

F37A said:

How can a buyer have certainty that the tenant would exit the property on time without buyer incurring too many costs

You can never be certain until they've actually gone. Even if a tenant appears to be willing to move, they might have trouble finding somewhere to go.

F37A

Haven't spoken to tenant yet but will at the viewing. Looks a gamble for a buyer to spend all that time and energy and then realise had a problem tenant all along. 

Ath_Wat

F37A said:

Haven't spoken to tenant yet but will at the viewing. Looks a gamble for a buyer to spend all that time and energy and then realise had a problem tenant all along. 

Yes, that is why people often do not agree to purchase houses with tenants in situ (unless they intend to keep them on). Wait for the tenant to leave and then commence your proceedings.  If the vendor manages to sell to someone else in the meantime; c'est la vie.

A vendor should really sort all this out before putting the house on the market - unless he is hoping an investor will take it on as a going concern, of course.

Rumana03

As someone else said..even if you speak to the tenant and they say yes they will move out, that still doesn't guarentee it.
We saw a house where they had open days on the weekend. The following week the tenant made excuses not to allow viewings. Two months later it was more excuses after excuses. They either must have changed their mind about moving out or they looked around and realised it's hard to find another rental property.

Personally I don't understand why sellers bother to try and sell a property whilst the tenant is still living in it. The offers will always be fewer and less than what they would have been if the property was empty.

movilogo

I feel these properties quite risky to take on as no guarantee tenant will exit.

I bought properties where tenants were there but moved out before contract exchange. 
You can always visit the property to see if they moved out before contract exchange. Typically contacts are drafted "vacant upon completion" manner.

Now if tenant wants to play rogue, you will never know beforehand. 

diystarter7

Speak with them.
If sold with vacant possession, I guess you could sue the seller if T is not moved out.

Down the road someone bought a preprty with a sitting T/family they stayed there for another year or so and moved, he had no probs.

A friend bought a BTL but with T's in it but did not like them and wanted vaccant possession on completion and he go what he wanted.

@movilogo

you said you bought properties where the I's moved out before exchange - but if I was a seller I would not go for that just in case you backed out then the seller won't have an income and may not be able to sell for a few more months.

canaldumidi

Well if the tenant does not move out on/before Completion then the buyer sues the seller for breach of contract - 'vacant possession'.

But a sensible buyer will

a) check the tenant has left before Exchanging Contracts, or

b) better still, not commence conveyancing, survey etc until the tenant has left (and the tenancy ended).

And a sensible seller will not start marketing till the tenant has left (and the tenancy ended).

diystarter7

canaldumidi said:

Well if the tenant does not move out on/before Completion then the buyer sues the seller for breach of contract - 'vacant possession'.

Thanks for confirming what I said.

Ath_Wat

Rumana03 said:

Personally I don't understand why sellers bother to try and sell a property whilst the tenant is still living in it. The offers will always be fewer and less than what they would have been if the property was empty.

Often because they are looking for an investor to take it on with the tenant - which of course puts the OP in a weak position as a buyer if such people exist.

Selling it now for an investor price might well be better for them than spending months getting the tenant out and then selling it even if they do eventually get a bit of a higher price.