Hi all, I have signed a contract with tenants who are due to come into my flat on 20th July.
The seller of the flat I was supposed to buy failed to complete yesterday so I cannot move out and need to cancel the contract with my tenants.
How do I do this? What happens? What penalties do I incur?
Thanks
Had you exchanged contracts on the flat?
Yes we signed in June
śr., 15 lip 2020, 18:49 użytkownik Colin via OpenRent Community | Landlord Forum <openrent@discoursemail.com> napisał:
I Do mean exchanged contracts with the seller of the flat?
oh yes yes over a year ago, its a new build that has encountered countless issues
śr., 15 lip 2020, 20:07 użytkownik Colin via OpenRent Community | Landlord Forum <openrent@discoursemail.com> napisał:
this seems impossible, you exchanged contracts on a flat a year age and have not yet completed on it??? So anticipating a completion you signed a tenancy with somone else. for this flat that you dont yet own??
Not sure if the poster means she was going to move into the new flat which failed to complete and she had tenants lined up for the flat she’s in at the moment but is now unable to leave?
You have read this better than me!!
Not sure!
As it could be a typo. Moving ‘out’ or moving ‘now’?
Sounds a problem, whatever.
mr T is right, the developer served notice on 30th June and completion day was Tuesday. I lined up tenants for the 20th thinking we would complete yesterday and now we have no flat to go to
śr., 15 lip 2020, 21:30 użytkownik Colin via OpenRent Community | Landlord Forum <openrent@discoursemail.com> napisał:
so what can I do with my tenants? do I have to serve notice to them (2 months) although the contract as not started yet? or can I just say ‘sorry the flat is not available anymore’?
śr., 15 lip 2020, 21:34 użytkownik Mr T. via OpenRent Community | Landlord Forum <openrent@discoursemail.com> napisał:
Have you taken a holding deposit or have you taken the first month’s rent and a deposit and contacts have been signed?
If you have just taken holding deposit then you just return this as there is no signed contract.
If you have signed contracts you need to tell them asap as they need to find somewhere else. Obviously, return their deposit and first month’s rent immediately.
What the legal ramifications are, I don’t know.
Can only be hopeful that as you acted in good faith and events were out of your control that if any action were taken against you it would be minimal. But it’s hardly your fault.
Are you still going to be buying this flat that you exchanged contracts on or has it all completely fallen through?
Just asking as I believe that if things fall through completely the seller has to reimburse you 10%.
But if completion is just postponed i guess that’s different.
It might be worth consulting your solicitor to see if you are due any compensation and how you stand legally letting the tenants down.
That way if you do have to pay anything to your intended tenants you would have funds.
Contract has not started so just cancel.
Email them right now if you haven’t already and transfer their funds straight back to them.
Hi Laura,
How are you getting on with everything?
hey thanks for asking. we will move into temporary accommodation and let our tenants in. we could not ruin them at such short notice. fingers crossed our completion won’t take too long…
czw., 16 lip 2020, 17:35 użytkownik Mr T. via OpenRent Community | Landlord Forum <openrent@discoursemail.com> napisał:
That’s really good of you to do that. Fingers crossed for you.