If you are considering purchasing a property at auction, which has a tenant in it, there are a few extra details that should be considered prior to placing your bid.POSTED 11/08/20
As part of the auction process, you would expect to receive an Auction Pack. That would include details about the property which is being sold. You would possibly also be given the opportunity to view the property, perhaps by way of a virtual viewing.If the property is being sold with a tenant in it, then you would also expect to see documents that relate to the tenancy. They would be things like:A) a tenancy agreementB) an energy performance certificate, known as an EPC,C) details of the deposit scheme which holds the tenant’s deposit,D) a gas safety certificate,E) a document entitled ‘prescribed information’,which has been given to the tenant around the time the tenancy was entered into.The absence of these documents might mean that there has simply been an error and they should, but for whatever reason, haven’t been placed in the auction pack. However, it may also mean that all or some of the documents do not exist.If that is the case, then you could run into difficulties further down the line in relation to the tenancy.My advice would be to ensure that you make enquiries as to whether these documents exist and insist upon seeing copies of them before you place your bid.If you are unsure as to what you have in the auction pack, and you would like to have a discussion about it, please feel free to give me a call.This note is not intended to substitute legal advice from your instructed lawyer. You should always consult with your lawyer directly regarding any specific queries you may have.