Buying a house with tenants in-what if they won't move out?

pinke9

I'm interested in buying a property where the vendors daughter and her 3 children are presently staying/renting. She is wanting to get a Council House for her and the children and I'm worried that this will not happen before the sale goes through. We don't want a buy to let we want to occupy the property ourselves. What are our rights here? She seems to be just living there rather than formally renting with a tenancy agreement.
What happens if she refuses to move out?

Doozergirl

You don't exchange contracts until she has gone. The vendor's solicitor will advise them not to do this anyway as if she didn't move out, your vendor could be in quite heavy financial trouble with you as the contract will clearly stipulate vacant possession.

Fergie73

She is wanting to get a Council House for her and the children and I'm worried that this will not happen before the sale goes through.

You are quite right to worry about this. In most places council house waiting lists are massive, and as these people are already housed, they won't even have priority. Basically you have to be homeless before a council is likely to give you anything (in most places anyway - there may be exceptions). I applied once, and was told I needed a letter from my landord kicking me out, with a date in the near future to be considered "homeless". So i definitaly think this hasn't been thought through from the vendors POV.

Legally, I don't know where you stand. Have you got a lawyer you can speak to. He/she should be able to advise what to do for the best. I walked away from a place last year where the situation looked similar - the vendors were a large family and showed no signs of wanting to move really, and the date for moving in was "when they find a new place". Just seemed like too much risk.

PasturesNew

She cannot move out. She has to be physically evicted, through the proper processes and court in order for the council to provide her with housing.

Until she is actually evicted. Booted out on the street, with the kids, off in a taxi to the council offices.... you can't exchange.

iolanthe07

Vacant possession has to be on completion, not exchange. If she is not out of the house on the completion date specified in the exchange contract she will face heavy financial penalties and have to reimburse all your expenses, hotel bills etc. Best take some professional advice though.

pinke9

Many thanks for all the advice here, we have decided that it is too risky to proceed.

Doozergirl

iolanthe07 wrote: »

Vacant possession has to be on completion, not exchange. If she is not out of the house on the completion date specified in the exchange contract she will face heavy financial penalties and have to reimburse all your expenses, hotel bills etc. Best take some professional advice though.

But if the property is not vacant upon exchange, the vendor cannot guarantee even to themselves that the property will be vacant upon completion. Hence you need to be sure that everything you need in place for completion is in place upon exchange (unless it relies on only you, as a willing vendor; certainly not a third party ); unless you are prepared to pay the consequences.

OP, I think you were probably right in this case