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Legal matters

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Occupier's rights during (and after) a house sale

138 replies

Samantha8027 · 15/12/2021 14:25

I wonder if anyone can help me with a tricky legal issue surrounding the rights of occupiers during (and following) a house sale.

My friend was recently 'forced' to move home when her parents sold their property. She's over 18, and she lived there with her mum and dad. Although she did not have any formal tenancy or rent agreement, she'd occupied the house for all of her life (since she was born) and paid (ad hoc) towards the upkeep/maintenance of the house, as well as her share of the household bills (I think she paid a third of these).

The contract of sale (incorporating the Standard Conditions of Sale, Fifth Edition) was signed by both my friend's parents and completion then successfully took place.

Sometime after the sale, my friend discovered that the Contract included an additional clause - specifically, Special Condition 7: "Occupier's consent". Special Condition 7 provides for named occupiers of the property (that is, any adults in occupation of the property other than the seller/s) to sign the contract to confirm their agreement to the sale and to release any rights they might have in the property and any fixtures and contents included in the sale.

It states as follows:

"Each occupier identified below agrees with the seller and the buyer, in consideration of their entering into this contract, that the occupier concurs in the sale of the property on the terms of this contract, undertakes to vacate the property on or before the completion date and releases the property and any included fixtures and contents from any right or interest that the occupier may have.

Note: this condition does not apply to occupiers under leases of tenancies subject to which the property is sold."

Below this, my friend's name was printed and there was space for her to apply her signature to give consent.

At no time did she sign the contract or give her consent to the sale. In fact, she was never actually made aware that her signature was requested/required. She was never shown the contract, or asked to sign it, by either of her parents. Indeed, she believes that this was deliberate; she was not supportive of the sale and would very likely not have given her consent or applied her signature if she'd been asked to.

As a result, she believes that the fact this clause was withheld from her might have been intentional. She was explicitly told that her consent was not needed and that he did not have any "rights" as an occupier. In fact, she was told that, despite her own unwillingness to move home, it was simply "tough luck".

Sadly, from her perspective, this clause has only come to light after the fact. The house has now been sold, and both she and her parents have left the property; the buyers have since moved in.

Upon learning about this clause, she asked for some informal legal advice and was told that it was very likely the case that, by moving out, she has effectively made the clause redundant, despite never having signed it. It appears that, had she known about it at the time, staying put and refusing to sign the contract would have been her best option.

She feels - and I think not unreasonably - that she has been deceived and treated unfairly. She is currently thinking about exploring any legal action she might be able to take.

I am wondering if anyone has any advice on the following:

(a) Does anyone know exactly what the consequences would have been at the time had she known about the clause in the contract, refused to sign in and then declined to give her consent to the sale or leave the property? How far do occupier's rights actually extend? What rights, if any, would she have had to remain there and would this have had any impact on the sale of the property?

(b) Acknowledging the fact that she has now left the house and effectively made the clause redundant, what (if any) are the implications this clause being withheld from her? My friend is very clear that she did not know that she had the right to pro-actively withhold her consent. In never having the clause presented to her, she feels she has effectively been 'tricked' into vacating the property.

(c) What legal redress do people think she would have in this case? She also finds it strange that the solicitors who managed the sale of her parents house did not query or question why she had not signed her consent, given that they inserted the clause (with her name) into the contract.

(d) If there are any implications stemming from the above (and there may not be), what repercussions would (or could) there be for the people who bought the house and who now live there?

OP posts:
LemonSwan · 15/12/2021 15:10

Wow usually its children going NC with the parents, but if my child tried to pull this I would be going NC the other direction! Unless theres a massive drip feed then its outrageous behaviour by your friend.

DaisyNGO · 15/12/2021 15:12

Just out of interest was she over 18 when the sale went through and does she plan to sue the solicitor or her parents?

NotDavidTennant · 15/12/2021 15:14

Well she could have refused to move in the sense that if she didn't leave the building then her parents couldn't physically remove her without committing assault. But that wouldn't have been the end of the matter, would it? She would then be stuck in a legal dispute either with her parents or the new owners and soon or later she would have to leave.

grassisgreen · 15/12/2021 15:15

She hasn't suffered any financial loss, which is the basis for a damages claim. She is wasting everyone's time.

Lobakgo · 15/12/2021 15:15

Unless her signature has been forged, I don't see where she can go with this. It's not up to her parents (or her parents' lawyer)to give her legal advice on what her rights are. That's on her to obtain. She chose to move out.

Lou98 · 15/12/2021 15:16

Sorry no clue about legalities but I think your friend is ridiculous.

She was living at home, as an adult, paying digs (as she should be) and is now trying to take legal action against her parents because they sold a house that they bought!

How old is she? Does she have her own place now or still living with her parents at their new place? If so I'd be surprised if they didn't kick her out as soon as they find out she's trying to claim money from them.

Perhaps she should stand on her own two feet as an adult and stop trying to get a cut of her parents money for a house they owned 🙄

Gazelda · 15/12/2021 15:17

I can't see that she's lost out financially. So surely the best she can hope to expect is an apology?

I do think she has lost any chance of a mutually respectful relationship with her parents though.

startled · 15/12/2021 15:20

I think the form that she should have signed would have been one that ensured the future purchaser she was buying the property vacant possession - this is purely to safeguard the purchaser

However although your "friend" had occupied the property as part of the household she wouldn't have had any rights to remain in the property as her parents could have asked her to go without notice just the same as having a lodger

redastherose · 15/12/2021 15:24

An adult occupier of a property can acquire an equitable interest in the property if they can show that they have contributed to the costs of the home. This would not be simply paying her share of the bills, it would require that she had consistently paid towards the mortgage of the property or contributed significant sums towards repairs and maintenance. This is why the contract has a section which requires adult occupiers to sign to say that they will leave the property on completion.

From what you have said her ad hoc contributions would be unlikely to be such that she would have acquired such an equitable interest (unless you are going to say she paid for a new boiler, double glazing or other significant works).

In any event having removed from the property her cause of action would now be against her parents, presumably she wouldn't actually want to take them to court to sue for her perceived losses in this matter?

It is all a bit too late. Had she taken legal advice at the time the property was marketed she could have told her parents that she wouldn't vacate and notified their solicitors to the effect. However, they would be entirely within their rights, having been so advised, issue her with a Notice to Quit and subsequently to apply for a Court Order for her to vacate the premises and that is something that is likely to be granted in these circumstances so that all that would have been achieved would have been the loss of her family relationship with her parents and they would have had the cost of obtaining a Court Order for her to remove from the property.

NynaeveSedai · 15/12/2021 15:25

By moving out though she gave her consent
The onus was not actually on the seller's solicitor to chase her agreement. It was on her to ensure she understood her legal rights.
There is literally nothing that could be done about this retrospectively.

KittenCatcher · 15/12/2021 15:27

Maybe if she signed the form and stayed put she may have become responsible for paying the mortgage and all the bills too, was she on the electoral role. Did she consider buying the house from her parents.

prh47bridge · 15/12/2021 15:27

On the information posted she had no beneficial interest in the property. if she had withheld her consent her parents would have had to evict her. She was what the law calls an "excluded occupier", so had very little in the way of rights. They could simply have thrown her out. Her chances of a successful claim against anyone on this basis are vanishingly small in my view.

Megan2018 · 15/12/2021 15:37

My husband is always listed in these as he can’t be on mortgage or deeds (bankruptcy related). He has to sign whenever I sell, but I am sure it doesn’t apply to adult children in that way. Only those with a right to live in the property.

burnoutbabe · 15/12/2021 15:47

in theory anyone could just refuse to move out when a sale happens - then you'd become a suattor and have to be evicted via court process.

But the form is mainly to establish if there is anyone who should be owed proceeds of a sale, who has a right to be on the deeds - basically if 2 people both contributed towards the purchase but only one went on the deeds.

Its a high threshhold to win those sort of cases, needing really a contribution to the deposit at the start.

So yes, she could have held up the sale whilst her parents formally evicted her but thats about it.

IShouldntPostBut · 15/12/2021 15:54

@hesbeen2021

And I think that's probably the best example of someone being entitled as I'll ever see
This times two!
IShouldntPostBut · 15/12/2021 16:03

Oh! And this:

Sometime after the sale, my friend discovered that the Contract included an additional clause

means that sometime after the sale your friend obtained a copy of the sale agreement (!) and went poring though it.

Your friend needs to get a life. And leave her poor parents alone!

NothingIsWrong · 15/12/2021 16:04

I had to sign one of these when my Mum remortgaged her house when I was an adult and still living there

TheYearOfSmallThings · 15/12/2021 16:16

I would not be encouraging her in this nonsense. Firstly because she will certainly waste more in legal costs than she gains by pursuing it. Secondly because it makes her look like a massive loser.

Curiousmouse · 15/12/2021 16:22

Just wow.

BumCatSmile · 15/12/2021 16:25

What does she expect to get from taking legal action?

Apart from looking like a dick.

PatriciaHolm · 15/12/2021 16:36

The clause doesn't give her any rights to decline the sale of the property. It relates to her agreeing to leave should it be sold.

If she had refused to sign it, all that would have happened (given she is very unlikely to have a beneficial interest in the property) is that her parents would have sold the house anyway, and any relationship that remained between them would have been ruined beyond repair when they had to throw her out, which they could legally have done. There would have been no financial benefit to not signing, nor would she have been able to stop the sale/stay in the house etc.

Though I can imagine the relationship is frosty at best already.

I can imagine what might have happened is the solicitor included the clause just in case, but her parents then told him/her that their daughter had no beneficial rights (and was unlikely to sign anything anyway) and just omitted to remove it.

anniegun · 15/12/2021 16:42

The clause was to protect the buyer from arriving to find an unwanted tenant in the house. If she had not signed it, her parents would have had to evict her (she had no legal tenancy so would have been easy), before completing the sale

VioletPetals · 15/12/2021 16:47

(a) what the consequences would have been at the time had she known about the clause in the contract, refused to sign in and then declined to give her consent to the sale or leave the property?

Her parents would likely have had to make her to move out before the completion of the sale if she had stated she was going to refuse to leave,
She would legally have been considered an ‘excluded occupier’ meaning they don’t need to go to court to evict her as they would a tenant, they could simply give her notice to leave and then change the locks and remove her belongings from the house.

How far do occupier's rights actually extend? What rights, if any, would she have had to remain there and would this have had any impact on the sale of the property?

She legally had no right. As stated above, as a ‘excluded occupier’ she wouldn’t even have the legal rights of a tenant.
The only impact on the sale would have been that the parents would have had to kick her out before completion.

(b) Acknowledging the fact that she has now left the house and effectively made the clause redundant, what (if any) are the implications this clause being withheld from her?

None, the clause is basically a way to identify any adults occupying in the property who may have an equitable interest in the property, such as spouses or partners not on the deeds who may have been paying towards to mortgage or maintenance of the property.

My friend is very clear that she did not know that she had the right to pro-actively withhold her consent. In never having the clause presented to her, she feels she has effectively been 'tricked' into vacating the property.

She wasn’t tricked, she would have had to leave even if she refused to, she had no right to stay, withholding consent to the clause would just have made her be forced to leave the house sooner than she did.

(c) What legal redress do people think she would have in this case?

None at all.

She also finds it strange that the solicitors who managed the sale of her parents house did not query or question why she had not signed her consent, given that they inserted the clause (with her name) into the contract.

Because it was a formality, she didn’t need to sign as she had no legal rights and no equitable interest in the property.

(d) If there are any implications stemming from the above (and there may not be), what repercussions would (or could) there be for the people who bought the house and who now live there?

Nothing as everything was done completely correctly.

I can completely understand that your friend is upset she has been forced out of her childhood home that she thought she had rights to stay in as she was sometimes paying money towards, sadly this is not that uncommon.
But she is grasping at straws.
I’m guessing she is hoping someone will say that the sale was invalid and has to be reversed and she can move back in, but that’s not going to happen.
She has no legal rights, wasting money on a solicitor is going to get her nowhere.

She should be putting her energy into moving forward with her life.

GoingBacktoSchool123 · 15/12/2021 16:48

Wow, you need to find better friends. Why on earth should she be in a position to sabotage the sale of a property she doesn’t own.

The legal answer - and take it from me I am an expert - is that the clause is there to protect the Buyer and it has nothing to do with protecting your friend’s rights.

It is no wonder the parents never informed her of the clause given what a nasty piece of work she seems to be.

ClementineWardobe · 15/12/2021 16:48

I mean this kindly, is not possible you are making it much much worse for your friend by stoking the fires of her argument? And from your description it is a feeble argument indeed. Perhaps it would be better to help your friend to sensibly adjust. If her relationship with her parents is such that it has led her to feel aggrieved in this matter, she may be better assisted by someone who helps her to move on.

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