Selling flat - should i exchange before or after tenants move out?

[Dingdong99]

I'm selling a property that is currently rented out. I have today served notice on the tenants and they should vacate within 28 days

My question is, should I wait until they're out before I exchange, in case there are issues, ie they won't leave

Or should I exchange sooner, so that the sale is guaranteed

My solicitor advises to to exchange once they're gone, as otherwise I could be in breach of contract

The agent obviously advises to do it asap

I wouldn’t think you will have a choice? As a buyer no way would I ever agree to exchange before the tenants move out.

When they’re out - where do you expect the buyer to sleep if they don’t go?

Are you selling with vacant possession? If you are, wait until your tenants have gone. You can do a simultaneous completion if you’re not actually moving and the buyer’s happy with it.

Your problems will come with the “should vacate”.

If you exchange with completion taking place on Day 28 then you will be in breach with your purchaser, liable for expenses plus you’ll be trying to get rid of your tenants.

There's no way your buyers will exchange until the property is vacant. And you have to sell with vacant possession.

Of course you wait until the tenants have vacated the property. They may or may not go in 28 days anyway. It depends if they have found somewhere else to live or not.

After. Don't give yourself the extra stress!

Definitely after. Your buyers will be unlikely to get a mortgage unless it has vacant posession.

Are you in the UK? I ask as a S21 is longer than 28 days (plus only the tenant or the courts can end a tenancy).

Buyer won’t exchange without it being vacant

Thank you! This all makes sense. I will ignore the estate agent!

28 days notice is not a legal eviction - it must be 2 months which coincides with a rent period. No purchaser would sign anything without verifying the property is in fact empty so you could ask till you are blue in the face but the purchaser wouldn’t do it anyway

No Solicitors's would advise to exchange with tenants in situ unless the new buyer is a landlord intent on keeping them on.

You know that your notice period is 2 months right? Not 28 days?

And you have served a Section 21 I presume? This is a notice seeking possession. They don't have to leave on/bythis date but hopefully they will. If they don't, you'll need to apply to the courts for an eviction notice which might take a few months depending on how busy your local court is.

It's not an AST as it's a short term professional let so it's a different type of contract

In all aspects of any sale or purchase, listen to the professional you are paying for legal advice, not the person who wants the sale for their commission

Listen to your solicitor and wait until your tenants have moved out

What type of contract is it?

License to occupy I think

Are you in England or wales? Do you live in the property? If they have sole occupancy they likely have a de facto AST tenancy.

That sounds a lot like it's serviced accommodation. Think similar to AirBnB etc but not necessarily for holidays, maybe someone who is relocating to another part of the country.

The renter is there for less than 6 months and it is not their main residence.

You wouldn't be legally allowed to exchange with tenants in situ, unless the purchasers are buying it as tenanted property (which they clearly aren't). The estate agent is talking unbelievable bullshit.