Legality of Home Purchase with Tenants on Current Lease

Legality of Home Purchase with Tenants on Current Lease

Member since 2021 · 4 posts · 1 vote

Hi Everyone!

I am currently considering purchasing a duplex in Asheville. The current landlord has both sides of the duplex rented. The original lease had them on a year term which has since expired. The original lease states that unless otherwise discussed the lease will be renewed at the same term from the original lease. After several email communications the landlord has sent us emails between both tenants and himself confirming earlier this year being on month to month. We have another recent email reply from both tenants confirming they understand they are on month to month with the landlord. Is this legally binding for the tenants?

Thanks

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Patrick DruryBusiness Member
Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
4y

@Jordon Doddy
Check the lease again. A lot of leases I have seen state after a year the lease becomes month-month. Usually, old school landlords use to do this. If you feel the lease situation is unclear or is no signed lease, then have them sign an estoppel certificate. This is not legal advice so I would consult your attorney and maybe have them review the lease and see what they have to say. 

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  • Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
    4y

    You should issue them a month to month lease. You can use a normal realtor lease and just put month to month on term. I would have an attorney get in writing from tenants they agree to month to month term before you close and then quickly after close get them on a lease if in your state it has a rule a lease renews into a year. In IL our leases turn into month to month if not renewed so this is never an issue. I still like to discuss with tenants just to make sure everyone is on the same page. 

  • Patrick DruryBusiness Member
    Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
    4y

    @Jordon Doddy
    Check the lease again. A lot of leases I have seen state after a year the lease becomes month-month. Usually, old school landlords use to do this. If you feel the lease situation is unclear or is no signed lease, then have them sign an estoppel certificate. This is not legal advice so I would consult your attorney and maybe have them review the lease and see what they have to say. 

  • Investor · Troy, NY · Member since 2020 · 120 posts · 93 votes
    4y

    As Patrick mentioned, since the lease is very unclear, have the tenants sign an Estoppel agreement/ certificate. 

    You definitely want to know what your walking in too, a year lease with a bad tenant/ unclear lease could be bad. The estoppel should certify everything that's in place at current terms, rates & price. Once that's filled out, it should concretely answer your questions & should give you a better idea on the status of the leases.

  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    4y
    Quote from @Jordon Doddy:

    If there is not a written lease in place, with definitive start/end dates, then you can consider the lease to have expired and the Tenants are on a month-to-month. You asked, and the Tenants confirmed. Treat it like a month-to-month. 

    If you intend to keep them, I recommend you create a written month-to-month agreement.

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