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Tenants
This
particular area is one which should receive special attention due to the
difficulties that it can raise for a purchaser.
There are a number of reasons for concern which are given below
along with some tips as to how to try to protect yourself if you purchase
a property with a sitting tenant or you suspect that there may be a tenant
in the property.
Main
issues relating to tenants:
-
Tenants
can hold a right of pre-emption over a property.
This means that they must be notified of any sale, price, terms
e.t.c. and they then have two months in which to decide whether they
would like to purchase or not;
-
Simply
because a tenant has renounced to his or her right of pre-emption does
not mean that he or she will no longer be in the property when you
sign the deed of completion. Certain
types of tenancies are subject to strict regulation and notice has to
be given in a certain form at a certain time to terminate the tenancy
agreement. Certain leases
can be for significant periods of time (3 years for example).
If notice is not given respecting the agreement and the law
then it could be tacitly renewed and automatically assigned to a new
owner;
-
Tenants
usually cannot be evicted over the winter months (November to May);
-
A
rural tenancy (bail rural) is usually for an extensive period of time,
often about 7 years. Such
a tenancy can even arise from a verbal agreement to use land so care
should be taken when consenting to allow a farmer to graze cattle or
use part of a field temporarily.
Protection
against problems:
-
When
viewing a property, pay attention to any signs that somebody is living
in a property which is said to be vacant or to animals on land
included in the purchase. Ask
about the position if there is cause for concern and if necessary seek
as much information as possible before committing yourself
contractually;
-
If
there is a tenant but it has been agreed that he or she will vacate
prior to completion of the purchase, ensure that the first contract
(‘compromis’) safeguards you in the event that this does not occur
for whatever reason. Equally,
you should be safeguarded against the exercise of a right of
pre-emption by any tenant;
-
In
this situation, you should ensure that the legal obligations have been
complied with in order to be certain that the property will truly be
sold with vacant possession and that written proof of this has been
obtained;
-
If
you take on a property with a sitting tenant, make sure that you are
aware of the terms of his or her rental contract before finally
deciding whether to purchase. Rural
and certain other types of tenancies are tightly regulated and you
should be comfortable with the situation from the point of view of
your rights and obligations and the legal position should you wish to
reclaim the property in the future.
03/02/2003
- Issue of the week
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