Can An AST Be Signed Before Buyer Completes?

[Zeemax_Mini]

I'm hoping for a yes or no answer, and hoping it's that simple!

If I wanted to rent a flat from someone who hasn't yet legally completed on their purchase, would the AST (which lists him as the owner/landlord) be valid as long as by the time the tenancy period started the completion had taken place?

Putting it another way, does it matter if the landlord doesn't legally own the property on the day the AST is dated/signed as long as he does legally own the property by the time the tenancy period begins?

Bit of an odd one I know!

Dom

[Zeemax_Mini]

wormus said:

Assuming the property is leasehold because he doesn't own the building, I don't think legally he can sublet to you. As a lessee he will need to ensure you abide by the terms of the lease. He cannot do that if he hasn't signed it.

Assuming he will own the building I cannot see how the tenancy agreement will be valid given at the time you both sign, he doesn't own it. I would wait until he does.

Edited by wormus on Thursday 12th January 19:02

Thanks for the reply! It's leasehold as you say. I was hoping that given that all dates contained within the agreement would be when he owned it, the actual "Date of agreement" wouldn't matter and would still be binding even if it was before legal completion. It seems I was wrong!

Dom

ETA: If we dated the tenancy the date the rental starts (by which time he will legally own the property), but signed it now - would it be valid then or would the fact that the agreement date wasn't the same as the date it was signed?!

[Zeemax_Mini]

Thanks Nick, very helpful and something I hadn't thought of - could you possibly give me your thoughts on the easiest way to achieve that, ie is it wording of the agreement itself, some kind of simple "cover note" or a supplemental contract?

Cheers,

Dom

[Zeemax_Mini]

Really appreciate it - no, we've been given a blank AST from an agent which has been amended accordingly.

It's a bit of a weird situation as I'm selling the property to him and renting it back for a fixed term of one year, hence I need the agreement in place before exchange/completion to cover myself, but the tenancy period won't actually start until completion (next Friday).

Cheers!

Dom

[Zeemax_Mini]

Thanks both! To answer:

blueg33 said:

Does the AST have a definition of commencement date? Just reword the definition so that it relates to completion under the sale agreement.

There is no definition of "commencement date", just the "Term Of Tenancy" as seen below, plus "This agreement is made on the xxx day of xxx" at the top of it.

TERM OF TENANCY
The Landlord lets to the Tenant the Property/Premises for a period of 12 months subject to the Break clause (Clauses 33.1 and 33.2) as set out in this Agreement. The Tenancy shall start on and include the **th day of January 2017 and shall end on and include the **th day of January 2018 but may be ended earlier by the Tenant giving notice under clause 33.1.

Wings said:

It is not so much the date a tenancy agreement is signed, but more the starting date of the rental agreement. When renting student accommodation, it was nothing to sign a student up to a tenancy agreement, 10 months before the start of the tenancy.

A tenancy agreement once signed has no rights under a consumer protection rights of a cooling off period.

Thanks, there is that! If completion had taken place then obviously that would make sense, the situation I want to avoid is him turning around after completion and saying that the AST is null and void because he wasn't the legal owner when he signed it and therefore couldn't legally enter into it.

Thanks again.

Dom

[Zeemax_Mini]

Wow, what a star - thank you SO much Nick, I really appreciate it...as above despite lot's of negatives on these forums there's such a great bunch of people and a huge wealth of knowledge! A massive help, I owe you one

Cheers,

Dom