Points to Note When Buying Tenanted PropertyMarch 7, 2014
As the property sector continues to show signs of growth, tenanted property is still a popular investment and there are certain points which should be considered when buying a tenanted property, for example:-
The Buyer should provide a copy of the current Tenancy Agreement, together with confirmation as to whether there has been any change of tenant. Any variations to the Tenancy Agreement by Side Letter or other correspondence must be provided;
The Seller should provide up to date information of the rental history of the property and whether the Seller is holding a deposit on behalf of the Tenant. If the tenancy was created on or after 1 April 2013, the Buyer will need to check if the deposit is protected under a Tenancy Deposit Scheme (see our separate website article in this regard);
The Seller should be asked if there are any breaches of the current Tenancy Agreement or any disputes between the Landlord and Tenant in relation to the property which are outstanding;
The Seller should provide copies of any inventories, safety certificates or inspections and other relevant documents for the property;
The Seller should be asked if he/she is aware of any contemplated or actual action relating to the property in sale by the local Council in respect of any Notice of Unfitness or Notice of Disrepair under the Private Tenancies (Northern Ireland) Order 2006;
A Buyer should check whether its funder has any particular requirements in respect of financing a tenanted property.
Please note; the content of this article is for information purposes only and further advice should be sought from a professional legal advisor before any action is taken.
Please contact Cleaver Fulton Rankin on 028 9027 3141 or alternatively visit www.cfrlaw.co.uk