Occupiers - vacant possession

The contract may provide for the property to be sold with vacant possession. In that case, not only the seller (and his family, in the case of a residential sale) but also any existing tenants or other occupiers will need to vacate the property on or before completion. The seller should not agree to sell with vacant possession unless he is able to require any existing tenants or other occupiers to vacate the property by completion .

In the case of a residential property, it is normal for adult residents of the property (other than the seller) to sign a release of rights or to join in the contract. Such persons may merely be in actual occupation of the property and accordingly have overriding interests; alternatively, they may have contributed to the purchase of the property, whether directly or indirectly, and accordingly they may have an equitable interest in the property. In any event, the buyer will wish to ascertain the position and to have the benefit of a release of rights from, or a direct contractual relationship with, such persons.

Both the Standard Conditions of Sale and the Standard Commercial Property Conditions provide two alternatives – either for the property to be sold with vacant possession, or for the property to be sold subject to the leases or tenancies listed in the contract. If the property is sold subject to leases, the contract will need to contain provisions relating to the management of the property between exchange of contracts and completion. The buyer will wish to investigate the terms of each of the leases, and will raise specific enquiries in relation to them.