Buying a Property with Tenants Being Evicted

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Buying a Property with Tenants Being Evicted

Wendell ButlerPro Member
Investor · Charlotte, NC · Member since 2020 · 139 posts · 95 votes

Hello everyone!

I have a couple questions regarding purchasing a property while some of the current tenants are in the process of being evicted. This is a property in Connecticut, just to specify the state, but I was wondering how this transfers over to the new owner?

Say I purchased the property when an eviction is going on, would it immediately restart now that I am the owner and I would have to restart the process? Or does the prior owner finish the case through court regarding it? Can he close with a current eviction occurring?

Please let me know what would happen and what avenues you would take in this situation. Would you take over the tenants evictions for a deal and start evicting yourself or make the old owner finish them? Kind of a weird predicament, but I feel I will run into this again!

If anyone has experience regarding this let me know!

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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
4y
Originally posted by @Wendell Butler:

This seller wants to sell because of the tenants issues, so I think the best approach is have the evictions that are almost done be complete, then close, and make a contingency with that.

I recommend closing 1-2 weeks after the evictions are complete. That provides you time to inspect after it's vacant.

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    4y

    I'm not sure how your specific state would treat it, but I suspect it would have to start fresh with the new owner. How can someone evict the tenant if they're not the legal owner?

    I would extend the contract and only close after confirmation the tenants have been removed.

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  • Wendell ButlerPro Member
    OP
    Investor · Charlotte, NC · Member since 2020 · 139 posts · 95 votes
    4y

    @Nathan Gesner Yeah that's what I was thinking in my head common sense wise, but I could not find anything online regarding it. Appreciate your response! 


    This seller wants to sell because of the tenants issues, so I think the best approach is have the evictions that are almost done be complete, then close, and make a contingency with that.

    2Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    4y
    Originally posted by @Wendell Butler:

    This seller wants to sell because of the tenants issues, so I think the best approach is have the evictions that are almost done be complete, then close, and make a contingency with that.

    I recommend closing 1-2 weeks after the evictions are complete. That provides you time to inspect after it's vacant.

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  • Michael Noto
    Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
    4y

    @Wendell Butler You can inherit an in process eviction from the previous owner. I’ve done it before in CT and know other people who have also. Consult a lawyer on the exact process you would need to follow and you would also need the current owner to be cooperative also. 

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  • Michael Noto
    Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
    4y

    @Wendell Butler With that said, the path of least resistance is to have the current owner see the eviction through before closing. Especially if you didn’t factor the full cost of an eviction and the fall out into your offer price. 

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  • Wendell ButlerPro Member
    OP
    Investor · Charlotte, NC · Member since 2020 · 139 posts · 95 votes
    4y

    @Michael Noto That's pretty cool, so that could at least get me to close and get the deal faster rather than having someone swoop under me and take it that doesn't care about the tenants, but still allow me to not restart the whole process again. 

    Was it easy to do if the seller cooperated? This seller seems very cooperative. 

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  • Wendell ButlerPro Member
    OP
    Investor · Charlotte, NC · Member since 2020 · 139 posts · 95 votes
    4y

    @Michael Noto Yes of course if he's willing to just finish the evictions first I would much rather go that route haha

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  • Frank Wong
    Real Estate Broker · Bay Area · Member since 2018 · 1k+ posts · 3k+ votes
    4y

    Close after the eviction has been completed. You can do a final walk through of the property prior to close to insure unit has been vacated. 

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  • Greg H.Pro Member
    Moderator
    Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
    4y

    In Texas which is one of the most landlord friendly states, the eviction would have be withdrawn and filed again

    An eviction suit is current owner as plaintiff vs current tenant as defendant. You cannot substitute a plaintiff 

    1Reply
  • Wendell ButlerPro Member
    OP
    Investor · Charlotte, NC · Member since 2020 · 139 posts · 95 votes
    4y

    @Frank Wong Thank you for your input! I agree

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  • Wendell ButlerPro Member
    OP
    Investor · Charlotte, NC · Member since 2020 · 139 posts · 95 votes
    4y

    @Greg H. Thank you for your input! Yeah that seems to be the way most states are.

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  • Paul Ireland
    Realtor · Boston MA · Member since 2018 · 44 posts · 23 votes
    4y

    Going through this in Worcester right now....I was able to have the sellers hold a few thousand in escrow that would be set on a drip to me for $500 each month that the tenants are not out. That way the sellers still have some incentive to continue their efforts and you are set up with some income incase you have to start all over. 

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  • Wendell ButlerPro Member
    OP
    Investor · Charlotte, NC · Member since 2020 · 139 posts · 95 votes
    4y

    @Paul Ireland Interesting, so you own the property but they are finishing the eviction?

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  • Paul Ireland
    Realtor · Boston MA · Member since 2018 · 44 posts · 23 votes
    4y

    @Wendell Butler in theory yes, but its not a cut and dry eviction because the person is a relative to the sellers and handicapped. They are working on placing her into suitable housing but she has been served for eviction. 

    1Reply
  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    4y

    I recommend you close after evictions is done. 

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