evicting tenant with active lease due to FHA loan requirement

evicting tenant with active lease due to FHA loan requirement

Cincinnati, OH · Member since 2017 · 1 post · 0 votes

The rental property I am living in was recently sold. I have an active lease through June 2018 and I am not in violation of any terms. There is not a clause in the lease stating it will be terminated upon sale of the property. My new landlord sent me a notice to vacate the premises in 30 days or he would begin eviction process. The reason listed was that he had to move into the property as a requirement for an FHA loan. I believe the lease on the upstairs unit in the building ends at the end of this month, but he doesn't want to live there as it is larger and thus the rental income he can get from it would be higher. He says his requirement to live on the property due to FHA loan cancel out my lease and that he didn't sign the lease anyway, my old landlord did. I was under the impression that leases transfer with property sales no matter what, unless it specifically states otherwise in the lease. He says he has the legal right to evict me. Is this true? I'm worried that federal law requirements of FHA loan override state laws protecting the tenant. I'm also thinking he just didn't do his due diligence before purchasing property. I am in Ohio. Thanks!

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Rental Property Investor · Whittier, CA · Member since 2014 · 325 posts · 268 votes
9y

He can try to evict you but I do not think he will get far until next June.  Your longer term lease protects both you as the tenant and the landlord.  If he really wants you out, ask him to buy out your lease with whatever it will take to make you move.

His misrepresentation on his FHA loan is not grounds to break the lease.

Get proper legal advice, I'm not a lawyer.

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  • Rental Property Investor · Whittier, CA · Member since 2014 · 325 posts · 268 votes
    9y

    He can try to evict you but I do not think he will get far until next June.  Your longer term lease protects both you as the tenant and the landlord.  If he really wants you out, ask him to buy out your lease with whatever it will take to make you move.

    His misrepresentation on his FHA loan is not grounds to break the lease.

    Get proper legal advice, I'm not a lawyer.

  • Greg H.Pro Member
    Moderator
    Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
    9y

    @Katie NA

    Based on the information you have provided, no you cannot be evicted because the new owner wishes to move in. The are no federal/FHA statute that allows him to break the lease agreement. Stand firm or if you are willing to move make sure you are compensated for doing so

  • Greensboro, NC · Member since 2015 · 129 posts · 30 votes
    9y

    So lenders give FHA loans without verifying that you can actually occupy the property?

  • Chris MasonPro Member
    Moderator
    Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
    9y
    Originally posted by @Katie NA:

    The rental property I am living in was recently sold. I have an active lease through June 2018 and I am not in violation of any terms. There is not a clause in the lease stating it will be terminated upon sale of the property. My new landlord sent me a notice to vacate the premises in 30 days or he would begin eviction process. The reason listed was that he had to move into the property as a requirement for an FHA loan. I believe the lease on the upstairs unit in the building ends at the end of this month, but he doesn't want to live there as it is larger and thus the rental income he can get from it would be higher. He says his requirement to live on the property due to FHA loan cancel out my lease and that he didn't sign the lease anyway, my old landlord did. I was under the impression that leases transfer with property sales no matter what, unless it specifically states otherwise in the lease. He says he has the legal right to evict me. Is this true? I'm worried that federal law requirements of FHA loan override state laws protecting the tenant. I'm also thinking he just didn't do his due diligence before purchasing property. I am in Ohio. Thanks!

    I don't know squat about Ohio tenant's rights laws, but yes FHA loans require that the owner intend to move in and owner occupy shortly after closing.

  • Rockaway, NJ · Member since 2016 · 2k+ posts · 2k+ votes
    9y
    your lease transfers with the sale of the property, and the old owners signature is just as good as the new owners, he cannot change the lease. however, in some jurisdictions, it is legal to evict a tenant of it is because the owner is looking to owner occupy. this is locale dependant and he may be required to pay your moving fees. confirm if this is legal where you are from nefore doing anything. if he cannot evict for occupancy in your state, then tell him to kick rocks or buy you out! you should take this time to read up on your local landlord tenant laws. i fear a misinformed landlord may try sbady tactics to get you to leave and any kind of "self help" eviction such as changing locks or shutting off utilities is HIGHLY illegal.
  • Minneapolis, MN · Member since 2013 · 2k+ posts · 1k+ votes
    9y

    You've been given some good advice,, I bet the your housing court division might have a tenant housing court advocate legal aid that you could contact for free, and get some starter advice. I'd try there first.. 

    Don't respond until you know legally what you can do.

    you could mention Fair Housing Law Act.. and let him know his action at this point isn't fair.. Housing discrimination is discrimination in which an individual or family is treated unequally when trying to buy, rent, lease, sell or finance a home based on certain characteristics, such as race, class, sex, religion, national origin, and familial status.

    you said he only gave you a 30 day notice and not the other tenant??  why ? you both have leases and you have not been treated fairly.. 

    And the lease you have is a binding contract it transfers to new owner when property is sold,,  

    Other option is basically,, is to start looking at spots to move to and tell the landlord your preparing to accommodate what he want's but your relocation and moving fee's will need to be equal to at least 3 to 5 month's rent.. I'd not move for under 3 to 5 grand.. He should have been prepared when he bought the building to know what was involved from the get go.. your upset and want to be properly compensated to make it worth your while to go....

  • Real Estate Broker · Cleveland, OH · Member since 2012 · 771 posts · 252 votes
    9y

    @Katie NA

    I believe you're in the right here. Best advice I can give you is to call or go to the housing court and get in touch with a tenant specialist that works in the court. Cleveland's housing court has them and I imagine Cincinnati's would too. An owner can't evict a tenant for any reason, it has to be for cause. It's most commonly non-payment of rent but sometime's it's holding over after a lease has expired or been properly terminated. I haven't seen the specific language of your lease but based on what you say it sounds to me like you're not in breach of it and the term hasn't expired, so there's no cause to terminate your lease or evict you... Check with a local expert though, whether it's a tenant specialist in the housing court, or a local real estate attorney.

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