Are you selling a house and have a tenancy agreement in place?
There are many factors to consider when selling a property with a tenancy agreement in place and it is important to give adequate and correct disclosure to the buyer of your property. A buyer should always be given the current information regarding the tenancy agreement including items such as:
- Tenants names
- Term of the tenancy (including expiry date of the lease)
In some cases the tenancy agreement may end prior to the date your property settles however it is essential to remember NOT to sign a new tenancy agreement until you speak to your Solicitor as this can breach your sale contract if you are not able to give the buyer vacant possession at the time of settlement.
If your tenancy agreement ends prior to settlement the buyer would expect to be given what they refer to as vacant possession of the property at settlement which means that no one would be living in the property. This is why it is important to check with your solicitor so that you can perhaps negotiate with the buyers or see if they are willing to agree to allow you to sign the new tenancy agreement.
A failure to provide vacant possession at settlement may lead to a breach of contract and possible further legal action being taken against you.