Buying with 'vacant possession on completion' any potential problems?

badger09

If you really like one of the flats, make an offer. If accepted, instruct solicitors so seller knows you’re serious, BUT tell solicitor not to do any work & tell vendor  you will not start conveyancing until the flat is vacant. In the meantime, keep looking. 

theartfullodger

Just because a place is sold does not end tenancy nor compel tenants to leave...

I'd not exchange until I (me, physical inspection.. ) had seen that the place was genuinely empty....

saajan_12

Yellowstone2 said:

Looking at an apartment thats currently for sale. Two almost identical came on the market the same day, although it didn't say, it looked like a landlord selling both. I asked the EA for clarification. They said there were tenants in both, but that the tenants are aware the properties are for sale. EA says the landlord would give the tenants notice to move out on completion. - strictly, the only notice they can give can be to inform of their intention to go to court to seek a possession order. Often tenants do just leave at the end of this notice period, but they don't have to. 

 I suspect the listing doesn't specify sale is with tenant in situ, or vacant possession on completion in order to possibly to appeal to a wider buyers market, but it did concern me a little. - by the by now. 

What would happen if, come completion day the tenant dug their heels in and doesn't moved out. Would the vendor be in breach of the sale contract of 'sold with vacant posession' or would the tenant become the responsibility of the new owner? - provided you had the vacant possession clause, then the vendor would be in breach. Completion would be delayed until the vendor can get the tenants out, and you would claim costs you suffer as a result of the delay. After a point, you could also give up, call it a failed completion, buy elsewhere, and sue for the difference. 

What would happen if the tenant did leave, but left the apartment in a poor condition, or didn't leave the things specified in the fixtures and fittings? (for example if the fridgefreezer and washer/dryer belong to the landlord and are agreed as included in the purchase price, but the tenant takes them when they move out? - you could sue the seller (LL) for any differences vs the condition of the property at exchange. Note if there were things you can't see at exchange eg a hole behind the tenant's sofa and you discover at completion, that's on you. That's why it can be beneficial to insisit on the property being vacant at exchange. 

Not experienced with this kind of purchase, so want to check if it's really not a big deal, or if to not touch it with a barge pole! 

Key things to consider are: 
1) how likely are the tenants to leave (speak to them, not to pressure but just to get an honest idea if they have anywhere else lined up etc.. never a guarantee but its a probability game)
2)  how flexible your daily life is and how much of an upheaval a delayed exchange would be - eg do you have kids / pets / demanding jobs that would suffer with any uncertainty? do you have a chain / can you continue renting for a few weeks / months? How much of your stuff do need daily access to, or would some things being packed away be daily annoying?

Reason being, your costs would be claimable, but there's still hassle and upheaval. Some people would consider it bargepole territory, but for others it can be worth the risk. 

matthew91822

I am on the other side of this situation at the moment.

I have a buy to let which I am selling. Back in February we told the tenant we were not going to renew their end of April contract and they agreed, a section 21 was given. As this was all going well we accepted an offer of the property with similar situation to you however we said it would be before exchange. Long story short, the tenant never moved out and we went to court and the eviction is next Monday after 9 month of stress. Luckily we have the same buyer who waited all this time.

Just be prepared, it can be very unpredictable if the tenant has not yet moved out. Do not exchange until the tenant has left and you have proof of that.