Buying Propert already tenanted?
March 19th, 2010 by admin
Hi
Also do I need some special conveyancer for such property as my current conveyancer is very young lady who become solicitors just last month.
Thanks LionTame
No related posts.
Hi
Also do I need some special conveyancer for such property as my current conveyancer is very young lady who become solicitors just last month.
Thanks LionTame
5 Responses to “Buying Propert already tenanted?”
Comments are currently closed.
Hi Fabio –
Is there a term in your contract stating the property will be sold as vacant possession? You will need to check the contract before you go any further. If it is vacant then you have a long wait ahead of you. If it is noted as tenanted in the contract then you are certainly alllowed to continue through to settlement.
1. Tenanted property – Check the legislation your self and confirm how much notice a tenant needs to be given. If they are in a fixed term lease for 12 months that started in Feb 2007 then your agent is correct you cannot ask them to leave until their tenancy is up in February 2008.
2. Until you actually settle on this property (or final completion) you will not receive any rent on this property at all. The property is not legally in your name until settlement is complete thus you are not legally entitled to any earnings off this property. Also you are not entitled to ask the tenant to vacate the property as you aren’t the landlord.
3. I would advise that you exchange contracts and settle in your normal period. Then you are legally entitled to the rental income and then you can ask the tenants to vacate once their lease is up. Before you are due to settle get your solicitor to contact the Property Manager let them know to hold off disbursing funds until a settlement notice is received.
4. If you are uncertain of your confidence in your conveyencer the perhaps a change is good for you. Picking the best solicitor is hard but makes your life less hell. If you are willing to give her a go ask for a senior associate to guide her or be second in charge on your purchase. You don’t need a specific conveyencer to my knowledge, just so long as they know it’s a unit – strata title property. the vendors solicitor should have all that info already.
Best of luck.
Usually you are required to exchange contracts and complete within one month – Feb 2008 seems a long time off! You wont be the official owner until Feb 08 so the current owner would be having the rent. Sounds strange to me – but make further enquiries – by next Feb property prices may have risen so I guess you could be in profit if the price stays the same – but what about if the seller puts a price hike on it? Beware!
You can collect the rent, just make sure the current owner assigns the lease to you and notifies the tenants that you are now the landlord, and that all payments should be paid to you beginning whenever, ( the date of closing), takes place. If the closing takes place during the middle of the month, the rental amount can be prorated and you will get the appropriate amount for that month and continue to receive the rent until the lease is up. Be sure you honor the terms of the lease and introduce yourself to the tenants. You may even cut them a deal to move out sooner.
Fabio please do not exchange contracts with such a long completion date. This is not normal practice. The usual period between exchange and completion is 28 days, and although it can be any period you like, as long as both parties agree, this would be a big mistake. Did the Estate Agent tell you before that the tenants would not be out until next year and that he wanted a long completion date ? If not, walk away now and find another property before July.
If I knew more, I could help more, but you need more help than the inexperienced young lady can give, you need an experienced solicitor.
Remember, the money does not go to the vendor and you do not own the property until completion, so you won’t be paying a mortgage, you won’t be able to live there, you won’t own the property, you won’t be able to collect rent. You will be committed to the property, so you won’t be able to buy another. And if property prices fall between now and next Feb., you’ll have been royally ripped off.
leave well alone……….what with the state of the econemy at present. you don`t need a tenant in the way could be complicated..!