What is Vacant Possession?

A property sold with vacant possession in lay terms refers to a property which is being sold vacant and has no furniture or tenants occupying the property. The property should only have that which has been agreed as per the contracts in advance. Please ask your solicitor to clarify if you are unsure about any specific items.

As per the Standard Conditions of Sale in England & Wales, a property can be sold with or without vacant possession. Usually a property is sold with vacant possession unless it is a buy to let property in which case it may have tenants in situ who are to remain in the property post completion. If this is the case, the full terms of the tenancy will be detailed in the contract if necessary.

Selling a Property with Vacant Possession:

When a property is being sold with vacant possession, the vendors and any tenants may reside in the property until the time specified in the contract. Upon exchange of contracts, the matter becomes legally binding and there will be an obligation for the property to be vacated as per the terms of the contract. It is the responsibility of the vendors to ensure the property is vacant for the day of completion.

If there are existing agreements with the buyers for certain items to remain, any items which have been left at the property could make you liable to a civil claim.

If the property is tenanted, we recommend visiting the property to ensure the property is being sold with vacant possession on completion.

Buying a Property with Vacant Possession:

Where a property is being sold with vacant possession, the vendors have consented to vacating the property including of any occupiers, pets and possessions on the day of completion.

There is usually a week between exchange and completion and in this period most vendors make arrangements to be prepared to leave the property for completion.

If a property is being purchased where there is a tenant currently residing in as opposed to the vendor, it is important to ensure that the tenant will vacate the property to avoid any potential issues. If this is the case, it is important to relay this to your solicitor as early as possible so they can request the vendor’s solicitors to vacate the property.

Tenants in situ:

The seller is obliged to provide the current tenancy agreements for any properties sold with tenants in situ. If the property is being managed, the agents will be able to supply as such.

Should the sale be successful, the purchaser will inherit the role as landlord and any subsequent payments should be directed to them. If you are unsure of anything, feel free to raise any concerns with your solicitor.

Is there any risk involved?

Most likely there should be little reason for any issues to arise unless your solicitor has expressly raised any concerns with you.

The primary issue that can arise when buying a property with vacant possession is the tenants refusing to vacate the property by the date of completion. This can be sometimes common if there are issues with a related purchase or finding alternative accommodation. If this occurs and the property is sold with vacant possession, the purchasers may make a claim for any losses they have occurred as a result of failing to vacate.

The main risk as a seller is failing to vacate the property in which case you may be liable to a claim being made against you. This issue is usually more important where there is a tenant involved. To avoid such an issue, we recommend ensuring that the tenancy has ended before the completion date as it will allow ample time to ensure the property can be sold with vacant possession.

Your solicitor will be able to advise you best if a property is not vacated on the day of completion. They will be able to advise of any next steps and implications.

If you require any further information, please contact us for more.