This will be my first purchase that includes the tenant. I have already done due diligence on deciding whether I want the tenant and all that comes with that. I could really use some help with the purchase agreement if anyone has suggestions. I will be paying cash, no realtor or lawyer, only the title agency.
The situation is that the current tenants are month-to-month. I have advised the sellers that I think the best course of action would be for them to give notice of termination of their month-to-month agreement with the tenant by the end of this month effective March 31st (this gives the tenant the required 30 day notice).
I want to write my purchase agreement contingent on having a new signed lease with the tenants in place before the closing (hopefully March 31st). I have had several conversations with the new tenants are they are already on board with the changes, they would just need to officially sign my lease. I assume that as long as I don't require any additional security, there's no harm in simply transferring the deposit from them to me?
I've looked for samples of purchase agreements but am having difficulty finding one that would fit this situation. Most purchases including tenants include an existing lease, so the new owner is simply taking over the old lease.
If anyone has suggestions on how to best approach this, or information about something I may not be thinking of, or a sample of a purchase agreement for this type of sale I would appreciate it!
If the current owner terminates the lease of the current tenant, and the purchase agreement says that any leases will transfer, why can't you use the purchase agreement as stated? There is no lease that will transfer and you will present a new lease to the tenant at close. You could also write a simple addendum yourself: "The current month-to-month tenants, <name> and <name>, will start a new lease with <new owner> on <date>. The existing lease with <previous owner> terminates on <March 31?>. The security deposit will be returned to <tenant> by <March 31?>."
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