Question:
I recently made an offer to purchase a property. When I went to view the property without the agent there was an occupant in the property who told me that the property was 'not for sale'.

The seller said he bought the property on auction and promised that the occupant would be out by the end of May. The occupant, however, is still there.

Also, I do not think the seller will have time to rectify the defects as the deed of sale states that I will take occupation on registration.

What will happen now if I withdraw from buying as the property is already up for registration? What are the legalities involved if I change my mind and decide not to buy this property?

Answer:
You are legally bound to buy the property. The agent, for one, could sue you for her lost commission and the seller could claim damages.

The fact that the tenant is still there is not material as the seller is still the legal owner. He is probably keeping the tenant there as long as possible to cover his costs.

As long as the seller fixes the defects agreed to in the offer to purchase before you move in then he has fulfilled the conditions of the contract. However, if he does not fix the defects you can instruct your attorney to stall the registration until he has done so. Obviously it will be in the best interests of the seller to fix the defects to your satisfaction.

He must also ensure that the tenant has moved out. I have heard some horror stories about tenants refusing to move and the new owners having to go to the expense of evicting them.

Get the agent involved with the issues — it's her job to sort these things out. She is being paid a lot of money so make her work for it.