Accepted cash buyer rental property - Tenant hold the rentpayment

[Yenlan Patton]

Hi, I hope i post this under right category buying and selling discussion.

We are private owner, currently own a rental home in dfw and occupied with a good tenant (suppose), she is a single parent and work as a hospice and she is been good paying tenant. Her contract lease renewal in August. I dont know if my writing can put this right explanation. but Hope find some people here can enlighten me and guide in right direction. 2 weeks a go we signed the agreement that came the mail from the company that cash buyer, please dont judge ..why because its a decent offer since the house needs a lot of cosmetic upgrade if selling with traditional market. also we dont want go to showing and all that. Now the issue ..the tenant claimed can't afford to move and she spoke to the company and told her they honor the lease till the lease expired and flip the house. We thought they are an investor rental business. Even so ..were they being appropriate talking with my tenant while doing the buying procedure and give my tenant anxiety. Also about earnest money, in the letter they will $500 for earnest money but they dont send to us, they said they give to lawyer. Would that be send after closing ? by their lawyer ? Currently my tenant hold the payment because she is looking a new place. Should i start send the demand letter and begin eviction or cancel the selling. We decide want to get out the real estate, anyone has similar situation ? 

[Bill B.]

If the tenant hasn’t paid you need to start the eviction process. The property is probably worth more to most buyers empty anyway, especially one that says they won’t be renewing. Earnest deposits are usually held by title companies in title states and closing attorneys in closing states. It wouldn’t be their attorney. Giving their own attorney $500 doesn’t do anything for you. But yes that will become part of the money you receive at closing. 

Ps. If this isn’t Zillow, Redfin, Opendoor, offerpad offer but rather some company 90% of have never heard of. Protect yourself. Don’t use their contract. You might suddenly find your title clouded with their claim or unacceptable conditions or 6 months from now they say they can’t find a buyer and are rescinding their offer. You already mentioned they may have misled you in to thinking they weren’t flippers. 

Pps. If this property is over $100k, get at least a $5k deposit, held again by your closing attorney or title company using your contract and non-refundable after 10 day inspection period. Any company planning to buy your property with their money will know within 10 days if they want to go forward. 

Ppps (if there is such a thing.) maybe get an offer from the big guys who will close when you want.