Updated over 7 years ago on . Most recent reply
Seller not meeting sales agreement of tenant eviction.
What are my options? We are due to close in 2 days and the law states the tenant needs 60-day notice to increase rent or evict tenants. Seller did not see that part of our offer requiring them to evict tenants prior to closing and never gave notice to evict. The broker is saying to just give notice right when we close and collect rent in the meantime. We never met the tenants officially since we were not planning on dealing with them. Rent is currently below market and we had plans to renovate after closing so we could increase rent. Any advice would be appreciated.
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@Shellie Johnson I agree with @Nathan Gesner However, if you do take the broker's advice, and remember he is incentivized to close the sale, I'd make sure to have a significant amount of the sellers cash ($10k ) held in escrow to be used to pay for the eviction costs if it comes to that. The balance less a PM fee given to them when the tenant leaves.
Its not your problem that the seller "didn't see that part" they signed a contract. Since now you are assuming the risks of his tenants without time to conduct your own DD you at a minimum need protection and I'd push for compensation.
Also don't forget that since you now have a tenant you'll need the security deposit transferred at closing too.