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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:
Hippychicken1 · 15/12/2021 16:48

I’m just selling my parents house and I noticed there was a clause like that in the sellers pack

SmolCat · 15/12/2021 16:49

If you are really her friend then I would focus on helping her work through her issues rather than spending so much time looking for evidence to back up her ridiculous, entitled ‘case’.

Samantha8027 · 15/12/2021 16:52

@VioletPetals

(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.

Comprehensive and useful, thanks!

Although knowing her as I do, she is highly unlikely to simply "move forward"; I suspect she will explore whether she could be considered to have had a beneficial interest in the property. She will not give two hoots about the extent to which this damages her relationship with her parents.

OP posts:
JSL52 · 15/12/2021 16:54

Would she have actually tried to stop the sale ?Confused

burnoutbabe · 15/12/2021 17:02

i asssume she can still claim BI, having sold the house doesn't stop that as such - she would still be owed the money by her parents IF SHE WON (HIGHLY UNLIKELY)

So she needs to see a solicitor for an actual discussion of this, nothing you say will probably resolve matters in her head.

KittenCatcher · 15/12/2021 17:17

Let her spend her money on trying to see if she can claim money back from her parents if thats all she cares about. She needs legal advice that she needs to pay for.

SmolCat · 15/12/2021 17:19

She will not give two hoots about the extent to which this damages her relationship with her parents.
And you want to be friends with this person?

AmIgoinghomeforXmas · 15/12/2021 17:19

Your friend would be better off spending her money on therapy rather than getting further legal advice.

Paying keep to your parents isn't going to give you a beneficial interest in their house.

Did her parents tell her she had a share in the house?
Where any agreements however makeshift drawn up?
Did she pay the mortgage or substantial maintenance or repair bills believing that she had an agreed share of ownership of the house?

Below is what Shelter says on the issue although most of the focus is on cohabitation.

https://england.shelter.org.uk/professionalresources/legal/relationshippbreakdown/housingrightssofcohabitinggsolehomeowners/occupationnrightsiffonepartnerristheesoleowner#title-1

SheWoreYellow · 15/12/2021 17:25

You say “She feels - and I think not unreasonably - that she has been deceived and treated unfairly.”

Really? You think she’s been treated unfairly?

I agree with others saying you are not helping your friend by suggesting she has any case.

Samantha8027 · 15/12/2021 17:25

@AmIgoinghomeforXmas

Your friend would be better off spending her money on therapy rather than getting further legal advice.

Paying keep to your parents isn't going to give you a beneficial interest in their house.

Did her parents tell her she had a share in the house?
Where any agreements however makeshift drawn up?
Did she pay the mortgage or substantial maintenance or repair bills believing that she had an agreed share of ownership of the house?

Below is what Shelter says on the issue although most of the focus is on cohabitation.

[[https://england.shelter.org.uk/professional]]resources/legal/relationshippbreakdown/housingrightssofcohabitinggsolehomeowners/occupationnrightsiffonepartnerristheesoleowner#title-1

From what I understand of her situation - mortgage payments no (but there was no mortgage on the house for anyone to pay), substantial maintenance and repair bills yes.
OP posts:
Soontobe60 · 15/12/2021 17:26

@SmolCat

She will not give two hoots about the extent to which this damages her relationship with her parents. And you want to be friends with this person?
Perhaps the OP IS the “friend”?

Whether they are or are not, expecting to make a claim against your own parents in this case us probably as disgusting as it gets.

EmmaGrundyForPM · 15/12/2021 17:28

I remember 30+ years ago having to sign some paperwork when my parents remortgaged, because I was 18 and still living at home. I had no part in the mortgage, wasn't making any payments towards it but still had to sign to say I was happy.

Your friend sounds quite odd, is there some sort of backstory to this?

Samantha8027 · 15/12/2021 17:28

No, I'm not the friend. If I was asking about my own circumstances and situation, then I'd be open about that. I'd have no reason to lie, since no one on here knows who I am anyway!

OP posts:
Lovelydovey · 15/12/2021 17:28

If she’d refused to sign it - it would have delayed the house sale to identify if she had any legal basis to remain there (which it sounds like she didn’t) and to be evicted. They may have lost the buyers. Likely all she would have done is piss people off and been vindictive.

She’s moved out, the buyers got vacant possession, everyone’s happy, except her because she didn’t get her revenge.

WallaceinAnderland · 15/12/2021 17:34

She had no legal right to live there. If she had known about the clause and refused to sign, she would have been squatting and her parent would have had to apply to the courts to have her evicted. She would not have gained anything from this, financially or otherwise. By moving out, she no longer has squatters rights so has no legal recourse.

Dillydollydingdong · 15/12/2021 17:36

The clause is just a formality. If she had been asked to sign but hadn't, the parents would have had to evict her. This would have caused a delay in the sale, but wouldn't have prevented it. She has no rights against the parents and certainly none against the innocent purchasers.

Viviennemary · 15/12/2021 17:38

Never heard of such a thing. I'd be sceptical that the clause even existed.

AmIgoinghomeforXmas · 15/12/2021 17:41

I have a bit more sympathy for her if she had spent thousands on the maintenance of the house believing doing so gave a permanent home.

Could she ask the parents to return the money she put into the house?
Would they be willing or able to do so?

lynntheyresexpeople · 15/12/2021 17:41

LOL.
She will get nowhere. She owns no portion of the property, and is an entitled little madam who needs a sharp shock of reality. Living alone and not having her parents to rely on should do the trick.

Samantha8027 · 15/12/2021 17:43

@AmIgoinghomeforXmas

I have a bit more sympathy for her if she had spent thousands on the maintenance of the house believing doing so gave a permanent home.

Could she ask the parents to return the money she put into the house?
Would they be willing or able to do so?

I have no way of knowing the value of any maintenance she has contributed to, but it would not surprise me if it ran into the thousands.
OP posts:
DaisyNGO · 15/12/2021 17:43

OP "From what I understand of her situation - mortgage payments no (but there was no mortgage on the house for anyone to pay), substantial maintenance and repair bills yes."

Your 18 year old friend paid this on the understanding she part owned the house?

Samantha8027 · 15/12/2021 17:43

@lynntheyresexpeople

LOL. She will get nowhere. She owns no portion of the property, and is an entitled little madam who needs a sharp shock of reality. Living alone and not having her parents to rely on should do the trick.
She's also an entitled little madam with a very rich partner, so I don't think she's just going to drop things.
OP posts:
DaisyNGO · 15/12/2021 17:44

@Viviennemary

Never heard of such a thing. I'd be sceptical that the clause even existed.
It's on the last sale I did. It's part of standard conveyancing forms surely?
DaisyNGO · 15/12/2021 17:46

X posting everywhere

OP "She's also an entitled little madam with a very rich partner, so I don't think she's just going to drop things."

So that makes me wonder if he paid the substantial repairs

I was just guessing trust fund up till now.

DogDaysNeverEnd · 15/12/2021 17:47

Do you know how many years your friend had been paying for maintenance? There are 2 extremes of circumstance that would probably change things; 1. Young adult who has paid for a new carpet for their room and decorated. Parents have bought a comparable property and continue to allow adult child to live with them.

  1. Middle-aged adult who has subsidised elderly parents by covering multiple expenses as house shot up in value. Parents walk away minted after down sizing and excluding their adult child.

Would either of those describe the situation, or is it something in-between?

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