Buying a property- tenants have been handed notice

mike_cork

Hi,

Looking at buying a property- There are tenants in situ but were handed notice last month. Estate agent has advised the tenants have until Feb 2024 to move out.

Is it best just to not even bother bidding when the house isn't already in a state of vacant possession ?

How badly do you want it?

That's not far away at all, this is a long term purchase for you.

JeffKenna

Bid away, we're nearly in October now so by the time the sale is wrapped up it'll probably be Feb in any case.

mike_cork

https://www.boards.ie/discussion/comment/121169845#Comment_121169845

This is a long term purchase. It's a nice house in good condition so we would like to buy

lawrencesummers

You can bid away, go sale agreed, pay a fully refundable deposit to the auctioneer and not a penny more until the house is vacant.

You will need a solicitor anyway so run this by them.

You might find the tenants move faster if they get something else, and you might also find the council buys the house.

mike_cork

https://www.boards.ie/discussion/comment/121169881#Comment_121169881

My worry is what happens if the tenants don't leave in Feb?- i know a mortgage can't be drawn down until the property is in vacant possession.

If we get to feb and the tenants decide to overhold- That would really screw us

JeffKenna

https://www.boards.ie/discussion/comment/121169905#Comment_121169905

If the mortgage can't be drawn down then the sale collapses. Just make sure your solicitor has subject to mortgage drawn down (can't think of the correct phrasing) in the contract. They normally do anyway.

https://www.boards.ie/discussion/comment/121169892#Comment_121169892

I would agree with what other posters have said, bid on it.

The council are in the market for houses and the word here often is that they have cash to splash but on the other hand the tenants may leave sooner than expected.

MakersMark

I intend to do a write-up on my situation, but be aware that I served notice on tenants when I sold my house, and they overstayed by a year even though the rtb had ruled against them.

It is truly shocking the lack of power that the rtb has when it comes to enforcing their orders, and how easy it is for tenants just to flagrantly ignore them.

You could find yourself owning a home that you cannot move into.

lawrencesummers

I was told that the council wont bid against a first time buyer, but political pressure can change many things.

Bid on the house but bid on anything else you see that suits as well

Ginger83

https://www.boards.ie/discussion/comment/121169991#Comment_121169991

Many here would like to hear your story

MakersMark

I'll get to it soon...it is a long miserable story!

Ginger83

https://www.boards.ie/discussion/comment/121174055#Comment_121174055

You should consider doing an AMA

holliehobbie

https://www.boards.ie/discussion/comment/121171310#Comment_121171310

That’s not true. My sister was a first time buyer a few years ago and it was the council bidding against her. They outbid her in the end.

J_1980

What type of tenants are these? HAP/dole or fully employed house sharers?

makes a big difference assessing the overholding risk.

lawrencesummers

https://www.boards.ie/discussion/comment/121175158#Comment_121175158

Their rules have changed a bit over the last few years.

mike_cork

Fully employed house sharers is my understanding.

That was in response to J_1980

3DataModem

Ensure the contracts state that vacant possession is needed before closing, and go for it. Put the financial onus the seller to get the tenant out.

In-situ will put other bidders off, which is good for you.

J_1980

https://www.boards.ie/discussion/comment/121183554#Comment_121183554

I was in the same situation and they did move out as per agreement.

just make sure to only draw down once vacant, not couple days before.

But have to be honest, the 3-4 weeks before closing were full of anxiety….

3DataModem

https://www.boards.ie/discussion/2058315933/buying-a-property-tenants-have-been-handed-notice

Bid away. Sign contracts only if vacant possession is a contract condition, i.e. if they don't move out, you don't lose out. Agree the fee with your solicitor if you sign but don't close (it's not free).