Sticky situation with buying home with tenant's deposit money.
Hello and please advice...
My offer was accepted by the seller for $118k and we are scheduled for closing on June 25, 2014. This property has a tenant that pay about 1250 a month and is on a month to month with the seller. Seller have asked me to keep tenant on after I bought the property. I asked seller about the tenant application, background and payment history.... I was told that they pulled the credit report but not the criminal and everything look fine except they paid late a couple of time but is current on his payment now. NEVER DID THEY MENTION ABOUT THE 2009 FORECLOSURE! During home inspection, The home was very well taking off. I spoke with the tenant and they want to stay on with me. I gave then my new lease term($1280 deposit, $200 none RF pet deposit, $1280 a month with an incentive of $30 credit back to next month if they pay it on time AND THEY HAVE TO HAVE AN ACCEPTABLE BACKGROUND AND CREDIT CHECK). Tenant agreed and I sent him a link to apply and pay for the application process. The report came back and it does not look to good.... a foreclosure in 2009 and 2 DWI 15 years ago. AFTER a long hard look at the situation... I spoke with tenant and offered him the new lease term and told him that if he does not like this term then this is his 30 days notice to vacate the property.($2000 deposit, $200 pet, $1300 per month with $50 credit to next month if they pay on time.). Tenant doesn't like new term and have not call me back(may be he does not have all the money in time for the signing of the new lease sign with me in July).
I contacted the seller to inform him of the situation. I also asked him to taken care of the tenant before the closing date. Seller got upset and told me that I should not have asked and run the credit check on the tenant since the home is not officially my. He told me that I need to deal with the tenant on my own after we close on the house. At closing he will give me the Signed lease, move-in form and what ever left of the deposit money after he fixed the house.
HERE WHERE IT BECAME STICKY AND I NEED SOME ADVICE PLEASE!!!
* Do I have the right to do what I did?
* Does the seller has the right to keep the deposit money and deduct what ever he wants(Technically the tenant has not move out jet)? (In our purchased contract stated that he need to transfer the deposit money to the buyer)
* If tenant sign on with me then should the seller suppose to transfer the FULL amount of deposit to me?
* Whose is responsible for evict/decline tenant if he chose not to sign on with me?
* I have spent: $100 option, $1000 Ernest, $189 inspection, $600 appraisal..
** WHAT ARE MY BEST OPTIONS HERE...
ANY ADVICE WILL BE GREATLY APPRECIATED!!!
JOSH