Property tenanted before council approval

[Deb]

:confused:
My husband and I are buying an investment property off the plan. The vendor has currently tenanted the unit and the property hasn't been finalised by council as yet. We have paid 5% of the total cost. There is no indication as to when council will be finalised. We are already 4 months over the completion date.

Are we in a position to terminate the contract? The contract says "sold with vacant possession". Would we lose our deposit?

Any help appreciated.
Thankyou.

Deb.

[rajeshk4u]

You really need to speak to your solicitor about your situation. If the Council does not approve the final buiding you will not be able to get a mortgage on it. Perhaps there is a problem with the building?.

Your developer may have decided to tenant the units, as the sales markets is a bit slow at the moment, or he only wanted sell a few units and keep the rest. Normally, he would not be allowed occupy the property until council approval.

Are you saying that he has tenanted *your* unit?. If so you have a problem, I mean everything will become old!?. And you should seek a big discount!. People pay premiun for a new build because everything is shiny and new!

You really need to look at the contract and if they are late by 4 months, you might consider trying to get a refund....

[Deb]

Thankyou rajeshk4u,

:( We have our solicitor working on this right now. We tried to rescind from the contract but the developer said we would have to pay the penalty and he would not release us. We haven't mentioned anything regarding the tenant to him at present as we are awaiting our soliticitors further advice. He said we cannot put forward this tenant situation until we are just about to settle and then we MAY be able to rescind from the contract as the developer has broken it. Yes, they have rented OUR unit.

My husband said the same thing, it's all supposed to be shiny and new from the date we settle and this won't be the case.

I'm going to ring Council annonomously to see what the penalties may be for the developer having tenanted without permission.

I will keep you posted. Thankyou for replying to my post.

[rajeshk4u]

Yes, I think you should report back on this forum, obviously you are dealing with a crafty developer and we should be aware of scams (?).

1. Was this solicitor recommended to you by the developer?

2. I would make an appointment with the Building Control Officer at your council and speak to them about the situation. (I am wondering if the developer delibratly did not get the Final Approval, so that he could sit on people's money or perhaps the Council is being really slow).

3. Try to video of the site and try to get proof that your flat is occupied and that it is occupied by a tenant (rather then say a squatter). Better still speak to the tenant and ask them for a copy of the tenancy and explain if they co-operate you will let them stay on after you have bought it. You have to get 100% certain answers, the developer could claim that one of his builders went behind his back etc.... If you know the letting agency used etc... also, video tape things such as gas meters (to see if being used ....).

4. If this developer has cheated you in this way, I am wondering if he also cheated in the quality of the construction.

5. Also, I would speak to your solicitor about what if this developer goes bust....

6. Also, check if there is any expiry on your mortgage offers....