What is vacant possession?

Vacant possession has implications when buying or selling property. Continue reading to find out what vacant possession is and what it means.

In this article:

What does vacant possession mean?

When buying or selling a house, vacant possession simply means that the house you’re buying or selling must be completely empty on the day of completion. This includes the removal of all residents, tenants, and personal belongings - except those explicitly agreed upon in the contract.

While this may seem straightforward, complications can arise, particularly when selling a buy-to-let with existing tenants.

Selling with vacant possession

Selling a house with vacant possessions means that is your responsibility as the seller to ensure the property is fully vacated by completion day. This means:

It’s at the point where contracts are exchanged that it becomes your legal obligation to fulfil this. Failure to do so can delay completion, result in a breach of contract, and cause financial penalties.

Can you sell a property without vacant possession?

Yes, a property can be sold without vacant possession if the buyer agrees to take ownership in its current state, e.g. with tenants still in place. This is common in buy-to-let sales, where the buyer intends to continue renting out the property.

In such cases:

Buying with vacant possession

If you’re buying a home with vacant possession, this means the current owner is legally obligated to ensure the property is empty of residents and belongings by the completion date.

Exchange of contracts usually takes place a week or two before the agreed completion date and once done, the purchase/ sale is legally binding. In a standard purchase and sale, the seller will remain living at the property up until completion. However, if you’re buying property which has tenants living in it, the current tenancy agreement would have to end before the date of completion and the seller must make sure the tenants are moved out before exchange or completion.

If the seller fails to provide vacant possession, you may have grounds for legal action.

Buying or selling a property with tenants

The Standard Conditions of Sale in England and Wales allow properties to be sold either with or without vacant possession. If a property is being sold without vacant possession, it means that it is has tenants that will remain beyond the completion date. That means that if you were the buyer, you’d be agreeing to take ownership of the property with tenants in situ.

For buyers:

For sellers:

Buying or selling a property that is occupied by tenants is more common that you might think, and your conveyancer will be able to help you understand any differences in the process from a typical transfer of ownership. Read our guide to find out more about purchasing a buy-to-let property.

Vacant possession FAQs:

What does 'available with vacant possession' mean?

‘Available with vacant possession’ or ‘vacant possession upon completion’ means that the seller contractually guarantees the property will be empty and ready to occupy on the completion date.

What is ‘expected date’ of vacant possession?

The expected date of vacant possession is the agreed completion date included in your contract, when the seller has agreed to have the property empty and in an appropriate state to occupy. That’s not to say things can’t go wrong and delays can’t happen, however it’s an important part of the contract as it carries legal implications.

What problems can arise around vacant possession?

While most property transactions go smoothly once exchange of contracts has occurred, things can still go wrong, such as:

For buyers:

In either of these cases, you are legally protected as the buyer and should be able to make a claim, provided that vacant possession was agreed at exchange of contracts.

For sellers:

It is for this reason that it is always a good idea to schedule the end of the tenancy well before the completion date. This gives you ample time to check that the property is vacated and ensure it will be handed over in the required standard before the completion date.

How will a conveyancer help with vacant possession?

Your conveyancer will ensure that vacant possession is properly addressed in the contract and will be there to help you if anything goes wrong and advise you on your next steps if a property isn’t vacated on time.

If you are buying subject to an existing tenancy, you will also be advised to get specialist legal advice on the active tenancy agreements.

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What happens if vacant possession is not given on completion?

If the seller fails to provide vacant possession, the buyer may have legal grounds to delay completion or seek compensation for any inconvenience or financial loss.

Can a buyer refuse to complete if vacant possession is not provided?

Yes, if vacant possession was agreed in the contract, the buyer can refuse to complete the purchase until the property is fully vacated.

How can a seller ensure vacant possession is given on time?

Sellers should plan ahead by:

What should a buyer do if there are items left behind after completion?

Buyers should notify their conveyancer immediately. Depending on the contract terms, they may be entitled to request removal or compensation.

Does vacant possession include cleaning the property?

While vacant possession requires the removal of belongings, it does not necessarily mean the property must be professionally cleaned - unless specified in the contract.

How does vacant possession apply to commercial properties?

For commercial leases, vacant possession may involve removing fixtures, fittings, and ensuring the property is in a condition suitable for the next owner.