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Max Lowry
Max Lowry, Advocate
Category: Law
Satisfied Customers: 1457
Experience:  LLB, 10 years post qualification experience
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I am currently trading from a commertial property, I have been

Customer Question

I am currently trading from a commertial property, I have been trading from here for 2 years and have a verbal contract with the landlord to whom I have been paying a weekly deposit for ownership of the building.

In the last few days I have realised he has signed a contract with another company to sell to them and they are now sending court orders. Where do I stand?
Submitted: 4 years ago.
Category: Law
Expert:  Max Lowry replied 4 years ago.

Max Lowry :

Hi, welcome to the site. My name is Max and I will help you with your question.

Max Lowry :

Can you tell me a little more about the court orders that you are receiving please?

JACUSTOMER-87zl1er6- : Basically the landlord signed a lease with a large uk retailer. Who have asked us to leave the building so they can start trading
Max Lowry :

The court order, is this an order against you for possession?

JACUSTOMER-87zl1er6- : The court order is against the landlord, the contract was signed a year ago, they are claiming for loss of earnings and also want the building vacated so they can trade
JACUSTOMER-87zl1er6- : I have been paying the landlord weekly as I have agreed to buy the building, but currently in the process of getting a mortgage. I have signatures for the money I give him
Max Lowry :

So it looks like he has sold it to two people, at the same time?

JACUSTOMER-87zl1er6- : That's right but I have no written contract
Max Lowry :

It all seems a little bit of a mess really.

Max Lowry :

The law says that to sell a property completely, you have to have the agreement evidenced in writing.

Max Lowry :

So no written agreement probably means you haven't purchased it.

Max Lowry :

However, you may have a tenancy up until the point you do actually pucahse it by the paperwork being completed and going through.

JACUSTOMER-87zl1er6- : What about the money I've been paying? Also I have a verbal agreement?
Max Lowry :

Verbal agreements for the transfer of land are unenforceable, however, it might be that you have a tenancy instead. The money you've paid might be claimable back from him if not paid as rent.

JACUSTOMER-87zl1er6- : Yes so let's say I have a tenancy, what right do I have to stay here till I can purchase
Max Lowry :

As you're a business,when you started trading, you would have had the option to sign a special document to exempt yourself from the provisions of the landlord and tenant act 1954. did you do this?

JACUSTOMER-87zl1er6- : I signed nothing. The landlord was a friend and everything was on trust and word.
Max Lowry :

Those are the worst cases when you feel you've been set-up by a friend.

Max Lowry :

However.

Max Lowry :

You do have rights here.

JACUSTOMER-87zl1er6- : If the landlord agreed to back out of his second contract and let me buy, would he be able to remove himself from the contract?
Max Lowry :

As a business, you will be protected by the 1954 Act, and this will prevent any new purchaser simply from removing you.

Max Lowry :

If the landlord agrees to back out of the second contract, and the other purchaser agrees, then yes, he could allow you to buy it. It does require agreement though.

Max Lowry :

Why have you rated bad service?

Max Lowry :

I have not finished answering your question.