Why You Should Wait for Vacant Possession Before Exchanging Contracts 

It’s not unusual for a buyer to agree to purchase a residential property that is currently let, on the basis that the tenant will vacate before completion. But if the contract provides for vacant possession, it is essential that the property is genuinely empty on the day of completion—not just in theory, but in practice. 

Where sellers serve notice on an existing tenant and proceed to exchange contracts in the hope that the property will be vacant by completion, they are exposing themselves (and the buyer) to significant risk. The most common issue is that a tenant simply doesn’t leave when expected. Even where valid statutory notice (typically a Section 21) has been served, the tenant is not legally required to vacate until a possession order is obtained and enforced—something that can take months if court proceedings and bailiffs become necessary. 

If the property is still occupied on completion day, the seller will be in breach of contract for failing to provide vacant possession. This can have serious consequences: the buyer may rescind the contract, seek damages, or refuse to complete. It also creates additional difficulties where the buyer is reliant on mortgage funding. 

Mainstream residential mortgage lenders almost always make funding conditional on the property being vacant on completion. If the buyer cannot certify that the property is unoccupied, the lender is unlikely to release funds. This means the buyer may be unable to complete—triggering a breach of contract, late completion penalties, or even forfeiture of the deposit. 

To avoid these risks, the safest course of action is to delay exchange of contracts until the property is physically vacant. That means the tenant has left, returned the keys, and there is clear evidence the tenancy has ended. 

It is also wise for the buyer—or their representative—to physically inspect the property shortly before exchange. This helps confirm that the tenant has moved out, the property is empty, and there are no signs of ongoing occupation. It adds a valuable layer of reassurance before committing to a legally binding contract. 

At Anthony Gold, we can assist not only with the residential conveyancing aspects of your transaction, but also with landlord and tenant matters, including serving notice and obtaining possession through the courts where necessary. Our teams work closely together to ensure that your property transaction is handled efficiently, legally, and with the minimum of risk. 

If you’re involved in a transaction where vacant possession is a factor, get in touch. We’re here to help you navigate both the legal and practical complexities with confidence.