Seller won’t vacate tenant

Northeastern Pennsylvania · Member since 2025 · 44 posts · 18 votes

Seller likes offer made for duplex. But won't agree to 'Vacate Tenant' stipulation.
Duplex has 1 bed and 3 bed units.
I need one bed unit open for me to use per VA loan requirement.
Seller wants me to vacate tenant once I am owner.
I don't want potential expense and delay ~ and the VA may take issue if I'm not living there within 2 months.

Your thoughts ?

Kevin

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Dan H.Pro Member

Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes

9mo

If I was a seller, I would only vacate a unit if by contract you agreed tonpaynthebrent until new tenant was placed in the event that sale does not close.

Unfortunately, either the buyer or seller will have increased risk. Placing a qualified tenant takes work and time. This is work and time the seller does not desire in the event the sale does not close.

I understand your perspective. Do you understand the seller’s perspective?

You have a decision to make. Walk away or take on the risk. Seller has been clear that he is not motivated enough to sell to take on this risk.

Good luck

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Colleen F.Pro Member
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
9mo
@Kevin Carpenter Is the lease still valid? If the tenant has a valid lease that is not month to month they are required to honor the lease. They could pay the tenant to break it and move out only if the tenant agrees.
3 Reply
- Kevin Carpenter
  OP
  Northeastern Pennsylvania · Member since 2025 · 44 posts · 18 votes
  9mo
  @Colleen F. They are month-to-month
  
  Agents claimed we could not see property for 10 days due to this tenant. But when I met them they were nice.
  Still I don't want an extended expensive eviction process ~ and so I stipulated ' vacant ' in offer, which the seller refused.
  0 Reply
- Kevin Carpenter
  OP
  Northeastern Pennsylvania · Member since 2025 · 44 posts · 18 votes
  9mo
  @Colleen F. This is my first multi family ~ so I'm trying to do everything as ' smoothly ' as possible ~ avoid likely problems, etc.
  0 Reply
John Clark
Member since 2018 · 1k+ posts · 1k+ votes
9mo
Quote from @Kevin Carpenter:

Seller likes offer made for duplex. But won't agree to 'Vacate Tenant' stipulation.
Duplex has 1 bed and 3 bed units.
I need one bed unit open for me to use per VA loan requirement.
Seller wants me to vacate tenant once I am owner.
I don't want potential expense and delay ~ and the VA may take issue if I'm not living there within 2 months.

Your thoughts ?

Kevin
Move on. Seller knows tenants will be difficult so he wants to kick it to you. Find another property.
3 Reply
- Kevin Carpenter
  OP
  Northeastern Pennsylvania · Member since 2025 · 44 posts · 18 votes
  9mo
  @John Clark Ty John ~ sometimes it helps to hear another person tell you bluntly, just what I needed 👍
  0 Reply
Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
9mo
Either offer them a non-refundable deposit if you fail to close and they get rid of the tenant or move on. The seller doesn't want to have a vacant unit and not sell the place.
4 Reply
Dan H.Pro Member
Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
9mo
If I was a seller, I would only vacate a unit if by contract you agreed tonpaynthebrent until new tenant was placed in the event that sale does not close.
Unfortunately, either the buyer or seller will have increased risk. Placing a qualified tenant takes work and time. This is work and time the seller does not desire in the event the sale does not close.
I understand your perspective. Do you understand the seller’s perspective?
You have a decision to make. Walk away or take on the risk. Seller has been clear that he is not motivated enough to sell to take on this risk.

Good luck
5 Reply
Kevin Carpenter
OP
Northeastern Pennsylvania · Member since 2025 · 44 posts · 18 votes
9mo
Thank you all for these great replies 👍
1 Reply
Joe S.Pro Member
Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
9mo
Quote from @Kevin Carpenter:

Seller likes offer made for duplex. But won't agree to 'Vacate Tenant' stipulation.
Duplex has 1 bed and 3 bed units.
I need one bed unit open for me to use per VA loan requirement.
Seller wants me to vacate tenant once I am owner.
I don't want potential expense and delay ~ and the VA may take issue if I'm not living there within 2 months.

Your thoughts ?

Kevin

What if the seller vacated the tenant and then you find some reason that you deemed justifiable not to buy the property?

4 Reply
Steve K.
Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
9mo
It'll be hard to find a seller who will be willing to vacate a paying tenant prior to closing for the reasons already laid out above: basically if you back out for any reason during the contract period whether by choice or for reasons beyond your control, then the seller is stuck with a vacant unit and no income until they find a different buyer or a new tenant. Deals fall apart all of the time for myriad reasons (inspection, appraisal, financing fell through, buyer changed their mind, etc.). On top of that, VA loans are great for buyers but they aren't always attractive to sellers due to stricter property condition and appraisal requirements than other types of loans and obviously they are not nearly as attractive to the seller as a clean, cash offer would be.
Personally, I would feel comfortable buying a property with an existing tenant on a month to month lease using a VA loan. My understanding is that with VA loans you need to close with the intention of occupying the property, and most lenders want you to move in within 60 days after closing, but that there is more flexibility on the occupancy requirement with VA than other loan types. 60 days should give you plenty of time to get the tenant out even if you need to evict (check your local laws for proper notice to vacate/ non-renew a M2M, and average eviction times in your area). I also think that in a worst case scenario, if you are attempting to occupy but just need to finalize the eviction process, and it goes a little past 60 days, then you are in full compliance with the intent to occupy and the lender will probably give you some leeway. Talk to your lender about this and bring up some potential worst-case scenarios to see if there would be any flexibility on their end. Having that dialogue with your lender might make you feel more comfortable with the situation. For example I know VA loans have flexibility on occupancy requirements for special circumstances like deployment or transitioning out of service etc.
But yeah, as the seller I wouldn't give a tenant notice to vacate just because I got an offer, and most sellers won't do that in my experience. Perhaps if you are past all of your contingencies in the contract and clear to close, earnest money is hard etc. the seller might be more willing to consider delivering the notice to vacate/ non-renewal at that time to give you a jump start on the process. You could also offer to release some earnest money to the seller in exchange for agreeing to notify the tenant, and they might agree to that (money talks), but probably only once you are past inspection, appraisal, etc. If it's a great property for you, I'd jump on it and make it work personally. Good luck!
4 Reply
JD MartinBusiness Member
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Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
9mo
The easy answer here: a long enough closing period to allow the seller to have the tenant removed, and an amount of forfeitable earnest money reasonable enough to compensate the seller if you fail to close for any reason beyond inspection or financing (if I was the seller I would want a year's worth of rent). Buyers flake out all the time.
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Kevin Carpenter
OP
Northeastern Pennsylvania · Member since 2025 · 44 posts · 18 votes
9mo
Being a bit inexperienced I find your perspectives very helpful. Thank you.
1 Reply

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