Existing lease on a new purchase question?

Question

Hi I am planning on purchasing a multi family home that has 2 units occupied.  I understand that you have to honor a existing lease as a new buyer on a regular sale.  Is there an exception if it is a bankruptcy ?  I want to buy this house as owner occupied not a investment property.  I want to move in, but the lease is not up until 2015, does anyone have any answers?

Jon Holdman · Answer

Surely you're kidding, Account Closed  That sort of "self help eviction" will cause you far more trouble and money than buying one of the tenants out.

Joseph, are you trying to use an OO loan?  That can be troublesome in a situation like this.  May just to have to keep looking.

Account Closed · Answer

perhaps the house suddenly becomes uninhabitable? no heat for example? I would imagine the court would allow them to break their lease as would you (im from Baltimore where anything is possible)

Joseph Tarallo · Answer

@Jon Holdman  that was my intention but I guess I can't if it's occupied due to the existing lease ..

Joseph Tarallo · Answer

@Jon Holdman  Thanks Jon, I am trying to buy this multi family home as a primary but I am going to have a problem doing so because it has 2 units occupied.  I don't know any way around it

Jon Holdman · Answer

Leases do typically survive the transfer of ownership.  You could try to buy out one of the tenants if you want to move in sooner.

How is a bankruptcy involved?

As always, consulting an attorney may reveal more options.  And you need a landlord/tenants attorney in any case if you're going to be a landlord.