Entering a Contract Race when buying a property

Property is a scarce and expensive commodity. When there are many buyers after the same property, a seller can enter a contract race by accepting more than one offer.  This is to filter out the best buyer.

Contract Race – how it works

A Contract Race occurs when a seller accepts more than one purchase offer. The vendor’s solicitor issues contract packs to all the potential buyer’s solicitors. The person who can exchange first ‘wins the race’ for the property.

Timescales

The time it takes to complete a property transaction can vary. A cash buyer is usually faster in the race over a buyer waiting on mortgage approval.

When contracts are exchanged, both parties are legally bound to each other. If either side change their mind at this point – there are expensive penalties.

Duty to Inform

The seller’s solicitor has a duty to tell the buyers when a Contract Race is taking place. However, before the vendor’s solicitor can do this, they must get permission from their client.

Consequences

There is no legally binding contract at this stage, so buyers have the right to change their mind and withdraw from the purchase when they are told about the Contract Race.

A vendor cannot take action against a purchaser withdrawing. This means the acquired costs must be covered themselves.

This can leave the seller back at ‘square one’ – looking for new buyers.

It is always advisable to speak to your solicitor before entering into a ‘contract race’ so that you are aware of the consequences and implications.

The purchasers need to think about costs they may lose if they are unsuccessful in the contract race. For example, surveyor fees, searches and legal costs.

Get in Touch

At Levi Solicitors, our residential property team are accredited by the Conveyancing Quality Scheme. We explain the conveyancing process throughout the various stages and ensure that we complete your purchase or sale in accordance with your timescales. Call us today on 0800 988 7756 for a no obligation quote. Alternatively, email your enquiry to info@levisolicitors.co.uk.

contract race


Evicting tenants - Following the correct procedure and issuing notices

The landlord and tenant relationship like any other, is built on trust. The landlord relies on the tenant to look after and respect their property. In turn, the tenant expects the landlord to stick to the terms of the tenancy. However, landlords sometimes experience problems with their tenants that eventually lead to them having to issue an eviction notice.

Of course this is not ideal for either sides and things can get heated when eviction is mentioned. So what is the most appropriate procedure to follow in such situations?

Communication

It is wise to communicate with the tenant once issues arise. This is to firstly try and resolve them mutually avoiding evictions and legal proceedings. We often advise our clients to write a letter of complaint to their tenant. In many cases, a simple letter is the solution to resolving any issues the landlord experiences. However, if the dispute ends up in court, the Judge will consider all the steps the landlord has taken to try and resolve the matter themselves.

If the tenant does not respond to the letter of complaint the landlord needs to decide which notice will be served on the tenant. The appropriate notice will differ from case to case.

Issuing a notice

Landlords can serve Section 21 or Section 8 Notice on the tenant.

Section 21

Section 21 notices are issued when the landlord wants their property back after the fixed term tenancy ends. Or during the tenancy if there is no fixed end date (often known as periodic tenancy). Landlords are required to give at least two months notice to their tenant.

There are certain restrictions which prohibit landlords serving Section 21 notices. For example, if it is less than 6 months since the tenancy started or where a tenant’s deposit was not placed in a deposit protection scheme.

Other requirements must be fulfilled, and we recommend seeking the advice of a solicitor before issuing a notice.

Section 8

In order to serve a Section 8 notice, the landlord will need to show that the tenant has breached one (or more) of the contractual terms. For example, if there are rent arrears or a tenant has been a nuisance to their neighbours.

The notice period can vary and be as short as two weeks.

I have issued a notice but the tenants are still not leaving

If the tenant does not vacate after the served notice, there are steps a landlord can then take.

If tenants don’t vacate before the end of the notice period, the landlord can apply to the court for a Possession Order. This sets out that the tenant must vacate the property within a given timescale. This is the only legal way of physically evicting tenants who refuse to voluntarily leave.

Should the tenant still refuse to vacate, the landlord can apply for a warrant possession. This means the tenant will receive a notice of an appointment with a bailiff with a date they must be evicted from the property by.  Arrangements with the bailiff can be made to evict the tenant should they fail to leave.

Claiming rent arrears

The main benefit of using Section 8 notice is that the court can also deal with the rent arrears during the proceedings.  But under a Section 21 notice, a landlord will need to issue a small claim should they wish to pursue the arrears which may not always be practical.

Get in touch

Our team of specialist property dispute resolution solicitors can assist and advise at any stage of a dispute, from mediation through to court action and injunctions. For a free consultation call Levi Solicitors on 0800 988 7756 or email info@levisolicitors.co.uk.

 

Evicting your tenant