The risks of buying property with a tenant on “terms unknown”

I have repeatedly advised about the perils of buying at a Bid X 1 auction, or other online property auction.

I always advise about getting the legal pack checked out. And that often a receiver will sell a property with a sitting tenant on “terms unknown”.

Buying a property with a tenant on “terms unknown” is a risky proposition for you do not know the problems you are going to experience in trying to obtain vacant possession.

There is a report in the media this week, however, which brings the risks of buying at an online auction to a whole new level.

A buyer of such a property, who served a notice to quit and obtained an order from the Residential Tenancies Board, has been told by the High Court that his notice is invalid as he failed to prove there was a tenancy in place in the first instance.

And, to make matters worse, the occupant of the house is claiming adverse possession based on a claim of living in the house for years.

I do not know how this is going to play out and be resolved. But it reinforces the view that a) getting the legal pack checked out is advisable and b) buying with a tenant on “terms unknown” is a singularly risky proposition.