R2R contract issue
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Good morning All,
I know NRLA aren't keen on R2R but I thought I would ask advice from members as well.
I have some vanilla BTLs and a small block of flats as well as a R2R HMO in southern England on a two year contract. I bought this arrangement from a R2R operator who was reasonably honest in saying the Owner was erratic with contact and usually when it is in his benefit (not unusual unfortunately). Anyway, reasonable terms were negotiated and agreed and the contract started. We invested some money in some essentials, maintenance and advertising. We filled the property and knew that it would be some months before we would see a profit and that the plan had most of our profits locked into the second year. The contract clearly stated that the property would not be marketed or sold during the term. It also states that the Owner has sought legal advice before he signs the contract. I spoke with him on the phone and he confirmed that he had. He has several properties and businesses.
Long story short, after one year he informs me that he is selling the property as soon as possible. We have had various exchanges which have deteriorated. Fortunately, one member of his team is still proactive and some communication still exists. As soon as we were informed that he intends to sell his property we stopped signing any new ASTs. Unfortunately, a new AST had been signed only days before we were informed. We are trying to relocate that Housemate so as to save them the undue stress that will probably be involved. Section 21 notices were issued to all Housemates as soon as we were told that we were no longer required to manage the property.
I have been advised that I could take the Owner to the Small Claims Court for Breach of Contract. I am not keen to, purely because of all the stress and anxiety this will involved but equally I am not happy at being deliberately deceived. I do not believe this situation is purely a coincidence. I do not want to lose out on the lost profit but equally I now value my time and sanity.
I am keen to talk with anyone who may have some experience of this type of situation rather than just an opinion. That said, any advice will be greatly appreciated.
