I’m sorry but if you thought you were going to be able to download a transcript of this important judgement, I’m afraid that you are going to be disappointed. That’s unless you are prepared to pay the court stenographer yourself to listen to the tapes and type up that transcript. And that’s going to be expensive. Because Romford County Court is not a court of record. But the case is important because it reminds local authority conveyancers what can happen if they complete on the purchase of a property which happens to be occupied by a residential tenant. Even if that tenant had previously occupied under a shorthold tenancy, which could be ended as any time on 2 months written notice. What is worse, is that an existing shorthold tenancy automatically then converts into a fully secure tenancy under the Housing Act 1985. What a bonus for that residential tenant! Not only do they now have lifetime security. They’ve also got a statutory right to buy. And all because of a simple conveyancing error.
It is standard conveyancing practice that the existence of any residential adult occupier of the property must be disclosed to the buyer before contracts are exchanged. That will include anyone occupying under a shorthold tenancy. If this is not done and those occupancy rights are not brought to an end before completion, the buyer will take subject to those rights of occupation forevermore. Which was what had happened in this case. In fact there was nothing to suggest that the landlord had taken any formal step to terminate the shorthold tenancy, before that transaction completed.
A further physical inspection should take place on the morning of completion just to make sure that the property is in fact vacant before the balance of the purchase money is released. Getting it wrong is always expensive.
BRUCE AND HOLLY 