Someone you know thinking about a sale then rentback of your house?

Did you realise the FSA released new legislation about SARB (sale with rent back) agreements during the summer of 2009?

Do you know what security is right now provided to you the seller?

Is your fast house operator allowed to buy your property plus lease it back to you?

Did you appreciate that there are less than 90 firms in England permitted through the FSA to carry out sale then rentback transactions?

Before the SARB law was introduced there have been more than ten thousand small, rapid house buyer businesses enthusiastic to purchase your home. Most of these firms are totally informed that they’re no longer permitted (by law) to buy your residence. Unfortunately not all property buyers appreciate the law and still suppose they could carry out sale with rentback transactions.

We have been contacted by a property investor of late and they mentioned that the seller was remaining on as a lessee once a sale had ‘completed’. I asked if they were buying the house through among the ninety Sell and rent back authorised establishments and they said no!

The investor was quite shocked to learn they might be breaking the law if they proceeded with the acquisition in the current arrangement. This was because the provider merely did not realise that Sell and rent back has become regulated. Sadly ignorance of the legislation isn’t a defence in court.

What will this mean to you? If you agree to sell plus rent back your property to someone not authorised through the FSA (lower than ninety businesses in the whole of England remember) then the sale will virtually never proceed. The quick property buyer might be notified by their solicitor, occasionally at the final minute, that they are not duly permitted to complete the acquisition.

The FSA introduced the stringent rules for SARB transactions to safeguard sellers from the few unprofessional traders that operated in the business. If you’re contacted by fast home provider that gives you a sale then rent back agreement PLEASE ensure that they are duly authorised. They will be able to establish to you if they really are authorised and if you are in any doubt verify the FSA web site. Every one of the allowed businesses are listed on the website for all to see. If their name does not appear on this register ask them why not and end proceedings with them.

It is simply not worth the risk of working with any firm that is not permitted to perform sale then rentback transactions, you have been warned.

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