Selling with tenant In-Situ

Hello Fellows,
Does anyone know happens if a property is sold with tenants in-situ?
Thought I’d heard deposit has to be handed over but they have caused damages which we have repaired so would need the deposit to cover these and suspect it will end up in a court.
Also, just out of interest, is a new tenancy issued by the new owners or can the new landlord immediately issue a Notice to Quit?
Thanking you all in advance.

Hi Mr T, this is something we’re looking to produce some guidance material on. I’ll come back and share it here, but it could be a few weeks.

View from landlords who have sold with a tenant in the property are very welcome!

Thanks Sam.

Yes it would be interesting to hear from anyone who or bought with a tenant already installed.

Best wishes

I’ve bought property with tenant.
Regarding deposit transfer, I took the view that the old deposit was a discussion between the tenant and the previous landlord. And the new deposit via myself was a completely different matter. I was prepared to be flexible with the tenant, to pay the deposit a month later to give them time to get back from the previous landlord. However in your situation where there has been damage, then perhaps you need something tighter.
The suggestion from my solicitor was to retain the deposit amount from the sale price, and then when the sale is concluded, I as the new landlord put that amount into the deposit protection scheme, and the seller needs to get the tenant to agree they as landlord keep all the deposit.

Regarding the contract. I have written a simple one page agreement that the tenant and myself all sign to say we agree to adhere to the terms of the old short term tenancy agreement.

Mr T. You think your deposit dispute might end in court. I use deposit protection service, and they have an arbitration service where both parties email in their point of view, and they decide for you.
Just in case that’s helpful.

Thanks very much for the information Mike.
I have used the DPS arbitration before and swore I would take my chances in court next time. Although if it’s any better remains to be seen.
All the best