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The seller’s liability will depend on the terms of the contract. If the contract provides for a sale with vacant possession, then the seller will be in breach if the tenant is still in occupation on completion. The obligation to give vacant possession becomes operable on completion and remains actionable after completion (regardless of whether the contract contains a non-merger clause). See Practice Notes: Vacant possession and Liability for breach of property contract after completion.
If there is any uncertainty as to whether the tenant will vacate on expiry of the notice, then the options are to:
wait to exchange and complete until after the tenant has vacated
exchange contracts, but make completion conditional on the tenant vacating
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