Problem With House Purchase

I signed contracts and made all relevant payments to purchase a house in November 2008. As yet I have not received the keys to the property. It turns out that although I had paid a deposit and signed the purchase contract with my Solicitor, the vendor then leased the house to another party. Apparently I will not get access to the house until the vendor finds alternative accomodation for the current residents. My Solicitor has not handed over my cheques as yet and I am considering withdrawing from the contract as I feel the Vendor has breached the agreement ie he also signed his sales contract. Can any costs incurred by me eg my Solicitors fees be recovered from the vendor ?. The auctioneer is also aware of the situation but will take no responsibility and has indicated that he is also looking for alternative accomodation for the leasee.

Any Advice would be welcome

You "feel" the Vendor has breached the contract....What does your contract say? Does it mention the letting at all?

What does it say about a closing date?

What does your solicitor say?

J

VinnyK said:

Apparently I will not get access to the house until the vendor finds alternative accomodation for the current residents.

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Was this a new build? And even so why would they need to rent it out if they had a buyer?
Sounds a bit strange. Perhaps you can complete the deal and take on the supplied "income generating" tenants. Perhaps the house was on the market because the vendor couldn't find a tenant but now has and wants to back out of your deal. If you call their bluff and want to complete asap, then you might get a better picture, but as you go forward now, be sure your solicitor is present and furnished with all documentation, because this sounds very messy

The house isn't a new build. The vendors had tenants in but these tenants left on the day I paid the deposit. However after the contracts were signed new tenants arrived and I am currently trying to get a copy of their lease agreement (if any). I purchased the house to live in so a supplied income is not an option. What I can't understand is why the Auctioneer and the Vendor are both looking for alternative accomodation for the current tenant even though the tenant was "installed" after the contracts were signed. If I thought the Mortgage lender would accept that my withdrawal was forced upon me and would leave the mortgage facility in place to allow me to purchase another property then I would pull out immediately. However, my own Solicitor has told me that they may withdraw the facility if I withdraw from the transaction. I'm totally confused as my Solicitor has advised me not to contact the lender !!

Are tenants not living in your house and thus should be paying you rent?

The vendor seems to have done a great deal for himself, he has agreed a purchase price with you and now he's renting out the house, so winning both ways, keeps getting rent and gets your money whenever he gets the tenants out.
Ask your solicitor about the completion date, has it passed? could your solicitor threaten the vendor with non performance of contract? a threat could be all that's needed, there is no shortage of available rented accommodation, i cant believe anyone would need more than a week or two to find somewhere.

What seems to have happened is that your purchased a rented house. It just so happens that one set of tenants left and were replace on the day you signed contracts. There is nothing wrong with the vendor having tenant's in the house, he may have had previous sales fall through and was taking no chances on not having an income, but the problem is that he probably did not give the current tenant's proper notice as per the PRTB rules or that the tenants are refusing to leave. The fact that the estate agent is trying to find them alternative accommodation would lead me to this conclusion. You could try and find out what is going on by asking the estate agent. A friendly chat etc. You solicitors advise not to say anything to the lender in the current climate is good advice, you have no guarantee you will get another mortgage if you pull out now. It is not clear if the completion date has come and gone, do you know when the completion date is/was? Do not on any account take possession of the house until you have vacant possession.