
The transactions in rental property deals may seem simple, but legal issues can arise very quickly. Conveyancing is a legal process of transferring ownership or dealing with rights over property and involves risks that the landlords and tenants must overcome. Failure to understand a legal document or miss out legal requirements or not disclosing information, can transform an otherwise ordinary agreement into an expensive litigation. It’s always best to consult with a residential conveyancing solicitor at the outset of the process to make sure that contracts are comprehensive, obligations are unambiguous and possible disputes are avoided.
Incomplete or ambiguous lease terms
This is one of the most common issues that arise when there is a lack of accuracy in tenancy agreements. Some clauses regarding rent increases, repairs and break options may be ambiguous or contradictory. Ambiguity may cause landlords and tenants to disagree, which in most cases may end up in long negotiations or litigation. Proper drafting and scrutiny of each and every clause will discourage future disputes.
Misunderstood repair obligations
Maintenance duties are another common source of conflict. Tenants may assume landlords are responsible for every repair, while landlords may believe only structural issues fall under their remit. Without clear definitions, problems with fixtures, damp or wear and tear can cause significant arguments. Solicitors often advise including specific wording in tenancy contracts that assigns obligations to each party with minimal room for interpretation.
Failure to check planning and licensing rules
Some landlords forget that local authorities impose planning and licensing restrictions on rental properties, particularly houses in multiple occupation (HMOs). Letting a property without the proper licence can result in heavy penalties and repayment of rent to tenants. Tenants also face difficulties if they discover their accommodation is not legally authorised. Ensuring compliance with council regulations before finalising a deal avoids financial and legal complications later.
Deposit handling disputes
Deposit protection rules are tightly regulated in the UK. Landlords must place deposits in an approved scheme within a set time frame and provide tenants with prescribed information. Failure to comply can lead to fines and restrictions on serving notice. From a tenant’s perspective, disputes often arise over deductions when leaving a property. Documented inventories, supported by photographs, reduce the likelihood of disagreements when deposits are returned.
Overlooking existing tenancies
In cases where an investment property is sold with sitting tenants, failing to check the status of current tenancy agreements can create difficulties. Buyers may inherit contracts with unfavourable terms or discover tenants have stronger legal rights than expected. Full due diligence, including review of tenancy documentation, ensures new owners understand exactly what obligations they are taking on.
Issues with service charges and ground rent
Leasehold rental properties bring additional complications. Service charges, building insurance and ground rent obligations must be fully disclosed before any transaction is completed. Landlords who fail to explain these costs risk claims of misrepresentation. Tenants may feel misled if unexpected charges surface after moving in. A detailed review of lease documents, together with financial statements from managing agents, prevents unpleasant surprises.
Inadequate searches and enquiries
Skipping or rushing property searches can result in major oversights. Local authority searches reveal whether a property complies with planning regulations, while environmental checks uncover flood risks or contamination. Overlooking these steps may leave tenants in unsuitable housing or landlords liable for rectifying undisclosed problems. Thorough enquiries provide both sides with peace of mind and legal protection.
Final thoughts
The process of conveyancing in a rental property transaction requires extreme care and detail. Issues on the lease terms, repair requirements, licensing or even deposits may run out of control when not taken care of early enough. Tenants and landlords both gain the advantage of involving legal experts with specialisation in property law early. Under the supervision of a skilled solicitor, parties have a chance to overcome the complicated rules, protect their rights and prevent conflicts, which would otherwise deteriorate the tenancy. Rental property transactions can be conducted safely and without complication by taking the time to prepare carefully.


