Buyers want to start work before completion

[LeakyPotatoes]

I'm trying to sell a property in Europe for an elderly sick parent who is in the UK and cannot travel.

The property itself is quite nice, but it has suffered somewhat from neglect, lack of maintenance and upgrading. As a result, it really needs a lot of effort and money to get it back looking good. I was there last month, and the roof had started to leak, cracked render that was causing rising damp, and the roof nearly falling in on an outbuilding. Together with windows that don't open properly, a weedy garden, it goes on. It's currently empty and no-one due to stay or visit it again now.
We've found some buyers and have negotiated a price which was heavily discounted, but are now at the point of drawing up contracts. A price was agreed late last year with an anticipated completion date of June this year, because they were in rented accommodation. It was at this point I took over the process, and was not involved until then.

They then sent a surveyor/builder round and revised their offer downwards having gotten an idea of the amount of money they will need to spend on it. New price agreed again, but I said we want to move faster. The draft contract has been drawn with the original dates expected to complete end June, although they have to complete within one month of paying the deposit, so this could be faster. I should say the property buying/selling process is much simpler than here and not as drawn out with searches etc.

The property has been on the market for a year, and the market not so buoyant, so we don't have the luxury of putting it back on the market, and as we are so close, I just want to get it over the line.
We have received a request this weekend from the agent/buyers, and they want to access the property as soon as they've paid the deposit, to start clearing up, do some essential maintenance work on the roof etc, with a caveat that if contract falls through they will lose any money they've spent on it.

I'm considering the request, what are the pros and cons of allowing them access before completion?

No don't! Only on completion

Yes, I agree. They will have all the time they need after completing.

I wouldn't risk it. If you're not approving the tradespeople they might bodge the works somehow and you'd be stuck having to fix it if the sale fell through. What's stopping them from exchanging contracts and completing the sale sooner?

In most European countries it’s extraordinarily difficult to get occupiers out of your property. Potentially years of litigation. Do not let them in until they own it.

Best not.
There could be all sorts of problems with insurance and liability etc.

Nope. That sounds dodgy. Let them buy it before they start messing around with anything.

Don't.

If the legal process is quick, they can absolutely wait. Although I'd say wait regardless of how long the legal process takes.

They are trying to time it so that they don't have to pay rent on their current accommodation and pay the mortgage too. But we could speed up the contract signing and deposit, and then completion within a month, to get them incentivised to finalise things quicker.

Just out of interest, how much of a discount did you accept off the asking? We’ve offered on a similar sounding property, although in the uk. It’s been on the market 18 months. Waiting to hear back if they are going to accept it. There’s been no other offers on it.

What country? It's impossible to answer your question otherwise.

I wouldn't agree to that, no.

Maybe suggest simultaneous exchange and completion so they happen on the same day, if they are that keen to get into the place.

Or completion just one week after exchange, if that's less stressful.

You will be exposed financially and legally because the house is legally not owned by the buyers. Anything goes wrong the owner of property - your parent - will be liable. You also won't be covered by insurance. UK

Spain

That isn’t possible, it doesn’t work the same way as the UK.

This sort of thing could happen where I'm from (South Africa) but usually, the new owners would pay what we call Occupational Rent and it's written into the sales contract and is usually quite expensive so they are highly motivated to continue to the sales process as quickly as possible.

So I would speak with the lawyers drawing up the contract to get advice on what is/is not normal and what legal requirements might be needed.

So they start work, property collapses, no insurance as they don’t own the property. No way on earth would I let them do any work.

45k off price of 295k. It would be worth the 295k if in better order, but there’s no chance of achieving that now, I think 260-270 is a fairer price. But we are not really in a position to push for more. Buyers know the situation and are taking advantage of it. Just want it sold now.

Absolutely not. They don't get to do anything until they actually own the property. It's basic common sense - all sorts of things can go wrong otherwise. Don't give them a key, or let them visit unsupervised.

Thanks @LeakyPotatoes thats th percentage we’ve offered although expecting to pay a good bit more after negotiation. Good luck!

I also wouldn’t let them in early.

Not a chance in hell.

Lack of insurance is the biggest problem. If someone injured themselves whilst working on your property they could sue you for medical bills.

Plus there's no incentive to hurry up the completion if they've already moved in.

Oh, and Spain is one of the countries with the biggest squatting problem. Takes years to get them and costs a fortune. Do not give them a key until they have signed the contract and the house is legally theirs.

Our sellers let us have the keys between exchange and completion. It meant we could paint the entire house and get new carpets put in before moving day and I’m forever grateful to them for that…. but I’d be more wary about structural works and potential insurance issues especially with it being another country.

Take advice from your Abogado, rather than UK MNetters.