Offer made on property we're about to rent :-( any advice?

[HolidayArmadillo]

We're in a position where we would love to buy but right now our credit files aren't squeaky clean and we can't scrape much more than a 5% deposit together. Our landlord told us he wanted to sell the house we live in so we were proactive (having been here once before with him) and found another property in our village that had been on the market for some time that was empty and we approached the agents to see if the vendors would be willing let the property with a view to us buying in around 18 months when we're hopefully in a better position. The vendors agreed, they said they would not market the property whilst we were living there and would let for 12-18 months, we paid a holding fee to the estate agents (despite it not being on the market for rent) and agreed a move date of 1st May, giving our LL just over 1 months notice.

The estate agents have called today saying an offer has been made on the property and the vendors are considering it. Can they do that?! We're going to be homeless in 2 weeks if so

[RCheshire]

Have you a contract for the new tenancy?

[HolidayArmadillo]

No because they said it would be signed on moving day?

[HolidayArmadillo]

I've clarified again with the agents and the only time we can sign the tenancy agreement is on the day we wish the tenancy to start. They say the offer will likely be rejected as it is way under the asking price however if they come back with an increased offer it is the vendors decision. And the holding fee is pretty much worthless. No in fact make that completely worthless.

[HaveToWearHeels]

Ludicrous behavior. Once credit checks and references have been passed, you both sign the agreement which states the date you will move in. The owners basically wants to have their cake and eat it.

[HolidayArmadillo]

The estate agent is refusing to allow us to sign anything other than a contract on moving in day, which they said could be done next week but we would pay rent from the date it is signed.

[HaveToWearHeels]

Then they are a very poor agent and don't really sound like they know what they are doing, or like I said they are holding off to see what happens with the prospective purchaser.
I am a LL and once all the background checks have been completed, the tenant and I sign the tenancy agreement which states what date they will move in. Sometimes this is done 6 weeks prior to the start of the tenancy. I think you may need to start looking for somewhere else to live. Has your current LL re let yet, if not he may be happy for you to stay a little bit longer.

[tribpot]

Is the agent marketing the property for sale as well? A definite conflict of interest if so.

What were the terms of the holding fee? Normally that is a signing fee, which you forfeit if you pull out. You haven't 'held' anything if the landlord can pull out without at least refunding you.

It sounds like Heels is right, and negotiating an extension with your current LL would be the way forward, but this is very poor form. I wouldn't trust this agency not to try and sell the property out from under you at any time, so I'd walk away from the deal right now and leave them with no tenant and no buyer.

[HolidayArmadillo]

Yes agent marketing for sale but we were told would be off the market if we went ahead with the rental, our village is so small and suitable properties don't come up often and we were so pleased as this was a house we had looked at on right move etc and thought if it was still for sale when we could afford to buy it would be a contender. It was all a bit too perfect. I hate renting, I feel like a second class citizen when all I want to do us provide a safe and stable roof over the DC's heads. It makes me so upset, have spent most of the day in meltdown.

[HolidayArmadillo]

Actually make that all say and it's now twenty to two in the morning and still can't pull myself together, DD is a sensitive soul and keeps asking me where we're going to live 'honest answer, I haven't a fucking clue love'.