Offer Contingent on Eviction of Tenants? Anyone Experienced This

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Client saw a property he likes. Duplex. Both tenants have leases lasting at least a year. Tenant in bottom unit has abandoned cars in driveway, trash outside and trash inside, based on looking through windows.  My client would like to purchase the property, but wanted to make the offer contingent on the bottom tenants having vacated the property.  Talked to the management company/ listing agent and they indicated that the trash was a violation of the lease, and they would entertain an offer with such a contingency.  The owner had actually considered doing this before listing, but current tenants pay on time and he wasn't sure he could find a replacement tenant that did the same.  Just wondered if there is anything my client and I should also include to protect his interests in the purchase agreement. Damage to plumbing and cabinets comes to mind.

Hi @Dave Homyak . Yes, I'd consider having the seller agree to amend the purchase agreement to have the closing agent withhold a chunk of the sales proceeds in escrow until the tenant is all the way out. Any damages done upon exit would be repaired from those funds. Make it large enough ($5-10K, maybe) to cover the scariest scenarios.

In my purchase contracts, I require a new lease be signed with my property management company or the tenants to be evicted PRIOR to closing every time I purchase an occupied property or unit.  Also, its sellers responsibility to turn over property unoccupied, and to have any authorized or unauthorized occupants removed.  I learned the hard way after purchasing a portfolio of condos and one unit the tenant was behind and it wasn't disclosed. PM sent them initial welcome letter and bill, and started contacting trying to get new lease and collect rent. They never returned calls, after about 3 weeks, PM contacted me and initiated eviction process. Then once the sheriff removed them, the place had to be renovated, and then took time to fill the vacancy.  It ended up taking over 90 days to get them out, renovate, and get new tenant lease in place.  Never again!!  


Offer was submitted over a month ago.  Listing agent (who happens to be managing) is impossible to reach.  Every few weeks they say they will present offer, but my guess is they aren't.  This property is in Detroit suburbs and the owners are Australian.  If the owners accept, it will be challenging to get anything done by these lame property managers.

My client recognizes it as a good deal and still wants me to try to get deal under contract.