Top of chain buying empty property

ironlady2022

Hi

I was informed the top of the chain who was willing to break the chain has now had an offer accepted on an empty property to avoid moving twice as both elderly and one is ill.

We were working towards 25/11. My buyer has a last query otherwise my buyer/Me/my Seller is ready. My Seller informed me and asked if I could complete earlier. I predict query will cost on next two weeks. 

The situation is, they will not order searches or do a survey as it is a cash purchase (sale of their current house to fund it so no need to get a mortgage).

Is this possible? Won't their Solicitor have to do any due diligence?

Furthermore, it's been suggested that the vendors of empty property allow them to rent privately so they move once whilst they get the conveyancing done. This sounds logical in practice.

Is this realistic?

housebuyer143

If you are not buying with a mortgage you don't need to do any of those things. You could theoretically sign it over in a few hours. 
In this case it could be sorted very quickly. 

Not really realistic to rent it back to the buyers. There are lots of legal things associated with renting and doubt they want that cost for a few weeks, do don't bet on that happening.

eddddy

ironlady2022 said:

The situation is, they will not order searches or do a survey as it is a cash purchase (sale of their current house to fund it so no need to get a mortgage).

Is this possible? Won't their Solicitor have to do any due diligence?

It's up to the buyers whether they do searches or surveys. Their solicitor might advise them to, but ultimately, it's up to the buyers.

It could be that your sellers have suggested this because they're trying to be helpful, but when their solicitor advises them, they change their minds.

ironlady2022 said:

Furthermore, it's been suggested that the vendors of empty property allow them to rent privately so they move once whilst they get the conveyancing done. This sounds logical in practice.

Is this realistic?

It's up to the sellers of the empty property. It's very risky for those sellers, because...

• the people move in to their empty property to rent it
• then change their mind about buying it (e.g. because they find they don't like living in it, or they're just 'difficult people')
• they refuse to move out
• the seller of the empty property now has tenants they have to evict - which might take many months

Often people suggest this type of arrangement, but when their solicitor explains the risks, they change their minds.

UnderOffer

Is it empty and going through probate or empty because it was a previous rental or other reason? I’d try and confirm this, as if probate has not yet been granted it could take months. 

Jonboy_1984

It could be done under a “license to occupy” rather than rental, which grants a lot less rights than a tenancy, but still a fair amount of risk all round.

ironlady2022

housebuyer143 said:

If you are not buying with a mortgage you don't need to do any of those things. You could theoretically sign it over in a few hours. 
In this case it could be sorted very quickly. 

Not really realistic to rent it back to the buyers. There are lots of legal things associated with renting and doubt they want that cost for a few weeks, do don't bet on that happening.

My agent said she's advised it privately and it's worked. 

ironlady2022

eddddy said:

ironlady2022 said:

The situation is, they will not order searches or do a survey as it is a cash purchase (sale of their current house to fund it so no need to get a mortgage).

Is this possible? Won't their Solicitor have to do any due diligence?

It's up to the buyers whether they do searches or surveys. Their solicitor might advise them to, but ultimately, it's up to the buyers.

It could be that your sellers have suggested this because they're trying to be helpful, but when their solicitor advises them, they change their minds.

ironlady2022 said:

Furthermore, it's been suggested that the vendors of empty property allow them to rent privately so they move once whilst they get the conveyancing done. This sounds logical in practice.

Is this realistic?

It's up to the sellers of the empty property. It's very risky for those sellers, because...

• the people move in to their empty property to rent it
• then change their mind about buying it (e.g. because they find they don't like living in it, or they're just 'difficult people')
• they refuse to move out
• the seller of the empty property now has tenants they have to evict - which might take many months

Often people suggest this type of arrangement, but when their solicitor explains the risks, they change their minds.

This is what I'm afraid of so have asked my Agent to do some digging. 

ironlady2022

UnderOffer said:

Is it empty and going through probate or empty because it was a previous rental or other reason? I’d try and confirm this, as if probate has not yet been granted it could take months. 

I've asked this question. Awaiting response. 

GDB2222

If it’s a pretty standard sort of property, in a row of other houses, on a suburban street, it’s very unlikely that the searches would reveal anything significant that can’t be discovered by other means. That’s particularly true if the property has been bought or sold fairly recently.

For example, anyone local will know if a new bypass is planned to go near the property, and the buyer can check the local authority's planning application website to see what has been applied for locally. 

Some of the things unearthed by searching are just a waste of time. We sold MIL's bungalow, and the searches mentioned HS2. So, the buyer’s solicitor asked us about that, despite the HS2 route being well known and being 3 miles away. 

It’s not at all unreasonable to take a view on whether to bother with searches. 

user1977

As mentioned, it's pretty rare for searches to reveal anything which is both a significant problem and surprising - so a bit of a mystery to me why people let them hold up transactions for weeks/months (or why nobody in England/Wales has set up a more efficient service to get them). I certainly wouldn't bother with them - if you want to reduce any risk a bit further you can get insurance (which is both instant and cheaper than getting the search).

Skiddaw1

Our former neighbours rented the property they were buying for a few weeks from the former owner's son whilst probate was completed and whilst I thought it was risky on many levels it all worked out OK so it can be done.