Exchanging contracts with tenant in situ: why vendors unwilling to provide tenancy agreement?

lb00

GDB2222 said:

lb00 said:

Reply from the OP

Thanks all for your replies.

I will try to visit the tenants today and see what they have to say. As some of you correctly pointed out, it's ultimately up to them whether they choose to leave. Having a direct conversation with them could be much more insightful than relying on documents that don’t provide any proof of their intentions.

I should have mentioned an important detail: The seller, a property investment company, bought this flat in February with the tenant already in place. Perhaps one reason they might be reluctant to provide the tenancy agreement is that they may not have all the necessary paperwork in order?

Could this be a problem for my situation? If the tenant ends up being difficult about leaving, I would prefer to walk away and get my deposit back as provided in the contract after the longstop date.

I think you understand what's going on, and it's hardly financial suicide to go ahead with the proposed contract. 

The only question I have is: when is the long stop date? Pretty soon after the date the tenants are supposed to move out?

In my experience as a landlord, most tenants are perfectly reasonable people. So, if they have agreed to a date, 90% will move out on time. 

As a way of update, my solicitor got back to the vendors' lawyers on Monday asking deposit is held to order by him rather than sending it to the sellers' solicitor. 
Still haven't received a reply which is worrying me a bit...
Thank you very much for your help.

newsgroupmonkey_

lb00 said:

GDB2222 said:

lb00 said:

Reply from the OP

Thanks all for your replies.

I will try to visit the tenants today and see what they have to say. As some of you correctly pointed out, it's ultimately up to them whether they choose to leave. Having a direct conversation with them could be much more insightful than relying on documents that don’t provide any proof of their intentions.

I should have mentioned an important detail: The seller, a property investment company, bought this flat in February with the tenant already in place. Perhaps one reason they might be reluctant to provide the tenancy agreement is that they may not have all the necessary paperwork in order?

Could this be a problem for my situation? If the tenant ends up being difficult about leaving, I would prefer to walk away and get my deposit back as provided in the contract after the longstop date.

I think you understand what's going on, and it's hardly financial suicide to go ahead with the proposed contract. 

The only question I have is: when is the long stop date? Pretty soon after the date the tenants are supposed to move out?

In my experience as a landlord, most tenants are perfectly reasonable people. So, if they have agreed to a date, 90% will move out on time. 

Long stop date is 22 calendar days after the date the tenant have said they will leave.

If the tenant has said they will leave (and you have that in writing), that does change everything somewhat.

lb00

Seller solicitor has agreed to hold deposit 'strictly to our order'. Am I correct in understanding deposit will sit with the buyer's solicitor and will be released to seller's solicitor at completion?

Tiglet2

lb00 said:

Seller solicitor has agreed to hold deposit 'strictly to our order'. Am I correct in understanding deposit will sit with the buyer's solicitor and will be released to seller's solicitor at completion?

Yes, buyer's solicitor will hold the deposit until all funds are transferred at completion.  That is completely normal.

lb00

Tiglet2 said:

lb00 said:

Seller solicitor has agreed to hold deposit 'strictly to our order'. Am I correct in understanding deposit will sit with the buyer's solicitor and will be released to seller's solicitor at completion?

Yes, buyer's solicitor will hold the deposit until all funds are transferred at completion.  That is completely normal.

However my solicitor is advising that instead of agreeing to the clause stating, "deposit held to order by seller's solicitor," we should rephrase it as, "deposit to be held by buyer's solicitor and released to seller's solicitor upon completion."

The rationale behind this is to prevent the seller's solicitor from requesting the deposit to be transferred to them between the exchange and completion.

Is this a reasonable concern, or is my solicitor being overly cautious?