removing "tenant" from new purchase

3 Replies

I'm closing on a house next week and I'm looking for feedback on how to potentially deal with a tenant that is dragging their feet getting out.  The tenant is the owners daughter who has lived in the house rent free since the house was purchased 15 years ago.  The mother is  an enabler, i don't get a sense that the daughter is refusing to leave, she just hasn't found another place yet and rentals are in short supply.  I'm trying to be proactive and have a plan in place if needed.

any advice appreciated, I thought one possibility would be to hold back some amount of funds at closing (3-5k?) for legal costs if she isn't out of the house.  i would have seller agree to this of course.  I'm not going to let the deal go over this, ~70k profit or a nice cash flowing rental once a quick cosmetic rehab is finished.  I'm in California.

The seller called me to give me her daughters contact info hoping i would handle it, i told her i have no legal standing to do anything until house closes.  However, i think i will call her to make sure she knows house will be mine in a week and get a feel for her plans.  i think she maybe doesn't have all the details from her scared to be disliked mother, or she is in denial.

I would not close on this house unless it was vacant.  The seller needs to take care of this prior to close.  California is a very tenant friendly state...you might be in for a long battle if you accept the problem child with the house.

I think that You should have made the closing subject to the house being vacant, maybe this will help someone in the future.

yes, probably would have been a good idea to have something in the initial purchase contract, maybe include some sort of penalty on them because i never want to lose a deal over a tenant issue since i dont contract properties unless their is a significant profit involved.

All has turned out well however, tenant is out of house, seller has signed closing papers and i will get keys from her shortly.

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