Two tenants have signed a contract for move-in in one month’s time. They have not paid the deposit yet. The day after signing they said they don’t believe we own the property, as the Land Registry has not been updated yet to show we own it. I sent them a TR1 to prove that the property is ours but they are not satisfied with that. They say we are perpetrating a fraud and threatening to contact the police. They want us to ‘cancel the contract’.
I have said we will allow them to back out but they need to sign a Deed to release the property back to us so that everything is done properly we can legitimately rent to someone else. We have a number of other interested parties.
I have provided them with OpenRent’s draft deed for tenancy surrender but now they are unresponsive. I am worried that they believe they can just walk away from this without doing anything, and obviously that leaves us in a precarious legal position.
Gordana1
You can’t blame them for being cautious but they must also understand that there can be a legitimate reason for your details to not have been updated by land registry. It is well documented within the industry that there is a backlog in some cases of more than a year. OR and Right Move except other forms of proof of ownership. I assume you took a holding deposit…
They dont need to sign a deed of surrender because they dont yet have a tenancy. Just a contract to provide one. A simple exchange of sign letters should suffice.
Incidently, if your property is not yet registered you may have tenancy problems. Google “registration gap” for more info.
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