What Does Vacant Possession Mean When Selling a Property?

Property can be full of many buzzwords and phrases that can be confusing to both buyers and sellers. Vacant possession is one such term, and in today’s blog, we’ll explain it and what it means when selling a property.

In simple terms, vacant possession means that the property should be empty on the day of completion. However, it’s not as simple as just walking out the front door; a seller has several obligations to meet.

What is vacant possession?

Vacant possession when selling a home means that the property will be fully vacant on the day of completion. It will be clear of all items that are not part of the sale, such as furniture, personal belongings and rubbish left from emptying the home.

It’s a contractual obligation – although not seen in all sales contracts – where a seller guarantees the buyer a fully vacant property at a set time on the day of completion. In most cases, it is used when selling buy-to-let property.

What does a seller need to do to comply with vacant possession?

A seller has many obligations to fulfil when selling a house with a vacant possession condition in the contract. These include:

• The property should be free from any occupier or tenant.
• There should be no evidence of personal belongings or any items that are not part of the sales contract.
• The buyer should have full access to the property and be provided with keys, access codes, fobs, and passwords upon completion.
• The property should be in a condition that allows the buyer to move in immediately upon completion.

Once contracts are exchanged, it is the legal obligation of the seller to ensure these conditions are met. If they are not, completion will be delayed, resulting in a breach of contract that could lead to severe financial penalties.

How can a seller ensure vacant possession is fulfilled?

The easiest way is to plan ahead. Sellers should investigate moving arrangements in advance, ensuring that all belongings are collected a few days before completion. Professional cleaning should take place once all items have been removed. Having the property cleaned is often not part of the contract, but it can be advisable to ensure it is done to a professional standard so that the buyer has nothing to complain about.

If the property is tenanted, landlords should ensure that all tenancy contracts expire in advance of the buyers moving in.

Can you sell a house without vacant possession?

Yes, many properties are sold this way. In this case, a buyer will take on the property with tenants still living there and in its current state. When this happens, the contract must state that the property is being sold with tenants in situ and that the existing tenancy agreement will remain in place.

The seller must also ensure all tenancy documentation is provided to the buyer before the sale is fully completed.

What issues can a seller face when a house is sold with vacant possession?

Aside from not having the property ready in time, which, as we have seen, comes with financial penalties. Sellers may find that tenants refuse to leave and disrupt the entire process. This can prove problematic for the seller on two counts. Not only do they now have to enforce the removal of the tenants, but they may also find that the buyers take action against them for failing to fulfil the terms of the contract.

What does available with vacant possession mean?

When a property is listed for sale, it may be advertised as “available with vacant possession.” This means that the property can be bought free from tenants, owners, and personal effects. You may also see properties advertised as having “vacant possession upon completion.”

The contract may also state an expected completion date. This is when the property is expected to be empty and ready for the buyer. As a seller, if you have an expected completion date included in the contract, you must ensure this date is met. Failing to do so can result in costly penalties.

How can I sell my vacant property?

Selling a property with vacant possession relies on everything falling in line at the correct times. If the property is tenanted, you can just ensure notice to the tenants is served in line with the tenancy agreement. This then leaves the property empty and ready for someone else to move in once you sell it. The only issue here is that you wait a long time to sell, losing out on rental income in the meantime.

If you live in the home and decide to advertise yours as being sold with vacant possession, you put yourself in a difficult position. Often, you only fully move out on the day of completion, moving into your new home the same day. This doesn’t give you a great deal of time to clear the property and have it ready as per the contract.

A solution could be to sell to a cash house buyer like Sell House Fast. That way, you sell your house quickly, with no chain, and free from the concerns of having to fulfil any specific sales terms. It starts with an offer from our team. If you accept, we can get the entire process completed in as little as seven days, or longer if you prefer. What’s more, if the property still has tenants in situ, we help there too. You can sell your tenanted property and avoid the worry about vacant possession, tenancy agreements or anything else. Give us a call today to find out more.