Tenant won't leave after sale agreed subject to vacant possession

skydyed

Would really appreciate any suggestions or advice...

Long-story-short, I had a small business working out of a commercial industrial unit that I had bought. The recession came and closed my business which meant I had to borrow against the unit to pay my debts. When my business collapsed, all I had left was the unit but the financial climate (and glut of buildings) meant it was unsellable.

All I could do to keep up the loan repayments was to rent it out to a religious group who turned it into a place of worship (no one else interested in renting so I had to 'go with the flow'). Everything seemed fine for the first couple of years, then the rent started to falter. They haven't paid in nearly a year now and promise-after-promise broken.

Finally got a sale agreed (at barely enough to pay off the bank) and still promise-after-promise' broken by the religious group. The question is in relation to a contract of sale which was signed subject to vacant possession. As the religious group still won't leave and I do not have the funds to go through the high court, am I screwed?

My solicitor seems to dodge the question if I'm committed via the contract (subject to vacant possession)? Do I have to go through with the sale and spend money I don't have on high court fees to keep trying to get them out, or can I back out of the contract because I am unable to get vacant possession?

It's an unusual one and something I haven't been able to find mentioned before on the boards.

ted1

they don't sound like there too religious. maybe you should try to appeal to their religious side.

athtrasna

Isn't there something about commercial letting that allows the landlord to just change the locks and lock the tenant out? Would be illegal in residential but check out commercial letting laws.

the_syco

From http://smallbusinesslawireland.com/tag/commercial-lease/

Recovery of Premises

Most commercial leases will have a covenant providing for the right to recover possession of the premises when there is a breach of a covenant of the lease.

He will want to do so if the rent is overdue and not being paid and the landlord thinks that he is better off trying to let the premises to someone else.
To do this the landlord must be sure that the lease makes provision for forfeiture in the event of rent not being paid or whatever other breach of covenant the landlord is alleging.

As said above, commercial lease is different.

discodavie

As above just have evidence that you gave adequate notice , go there when you know there will be no one there and change the locks , every single outside one and there you go.

Organise with one or two of them in the next few days to reclaim thier stuff if they want and a few mates there to act as security.

skydyed

Unfortunately, the lease just says that, after two years, it switches to a month-by-month rental with one months notice required by either party. It makes no mention of forfeiture but does say they will surrender the property at the end of the notice period. Their reason for not leaving is they say they have no- where to go but aren't looking for anywhere else. They say they can't afford to move but have stayed there without paying rent for a year. They say they have spent money refurbishing the place but could easily remove their carpetting, alter, etc.

however, my question was really to do with the contract. Can I back out of a contract that has a sale based on vacant possession if I can't afford the high court to get vacant possession? I'd hate to think I'm legally obliged to bankrupt mysekf with legal fees to fulfill a contract that was signed subject to vacant possession. Also, I understand changing the locks is a no-no because you are preventing them access to their personal property inside and they could always lie and say they tried to stop me and intimidation was used.

The_Conductor

You need to get a solicitor's advice on this.
What I would state however- is a commercial tenancy differs from a residential tenancy- and after the contents of a commercial unit are considered to be business assets, and not 'personal belongings'........

To be honest- it sounds like you're trying to do your best by everyone- aside from yourself. You have far greater rights- than you realise.