BUYING PROPERTY SUBJECT TO A TENANCY (and being pressed to exchange contracts!)

If you buy property with a tenant or tenants in occupation you will buy it subject to the existing tenancy – not with vacant possession. If you do not wish to take on the existing tenant you will have to ensure that they have been given Notice to Quit (and that this Notice is in the specified legal form).

It is always prudent to wait until a tenant has vacated a property before exchanging contracts. However, if the selling agents or the seller are pushing you for an exchange of contracts you may have to do so before the tenant leaves. In this event you should endeavour to ensure that the purchase contract makes provision for vacant possession on completion.

If the seller has served Notice to Quit on the tenant but they fail to leave on the due date, then the seller will be in breach of contract for failing to give vacant possession on completion. However, he/she might not want to risk such a scenario, and so although the agents or seller might be pushing for an exchange, they would be better waiting for the tenant to move out before exchanging contracts so that they are sure the vacant possession required can be given on completion.

The above situation can and will arise in many cases and it is vital that you obtain the correct legal advice. For more information please contact Simon Brooks on 01276 681217 or e-mail simon.brooks@brooks-partners.co.uk or Salesha Jackson on 01276 681217 or salesha.jackson@brooks-partners.co.uk .