I am selling a property that is currently tenant occupied. I am under contract and have an agreement with my tenant to provide cash for keys. I have a signed agreement from the tenant to accept the terms of the cash for keys but I have not signed it yet making it binding (received today). Yesterday was the inspection, and had pretty simple requests that were addressed in the inspection objection (replace garbage disposal and warranty on water heater, simple). This morning, the potential buyer tagged along for the appraisal and during this time the tenant intervened and was voicing his own concerns about furnace and A/C issues, of which had not been a concern with the inspection objection. Now the buyer is wanting to cancel the contract all together and move on, or reduce the sell price by thousands of dollars. Is this grounds for eviction in the state of Colorado? If so, instead of signing the current cash for keys agreement should I reduce the amount of the agreement to still expedite the move out prior to the 30 day requirement (to ensure house is empty by closing) with the thought the tenant would still agree to an amended agreement opposed to being evicted for disrupting my transaction that cost me a significant margin of sales profit?
On a time crunch with sale, please advise! Thank you!
Expressing an opinion is not grounds for eviction as freedom of speech is protected in the Bill of Rights.
The tenant was clearly hoping to upset your sale, and may continue to do so. I'd get them out of there at the earliest possible time, whether it is cash for keys or a simple non-renewal of their lease. You may lose this sale, but don't worry. The market is still pretty robust.
@Jeff Jackson you cannot evict unless they violate terms of the lease. If you can prove (beyond a reasonable doubt) that the tenant lied, you might have a civil case but even if they lost they would still be your tenant.
I would agree that they need to move.
Lean on the brokers to hold this deal together. That's what you are paying them for. That said, you would have to wonder about your liability if one of those systems did fail in the not too distant future.
I agree with Bill. If the inspection didn't show any problems, the realtor should be supporting that and reminding them that the tenant is mad because they have to move.
You will only make trouble for yourself if you try to retaliate for this. Wait till they break a lease clause of forget to pay, or till lease ends, and then get them out that way.
The buyer was at the appraisal? That is different. Did they contact anyone from the sellers side to be present for the appraisal?
@Michael Noto brings up a good point. You should also be there for the inspections as the tenant will be less likely to make up stories or if they do, you can set the record straight.
@Jeff Jackson well you can’t evict them for this . I’d remove the tenant and sell it to someone else of the current buyer.
Tell the buyer you aren’t reducing the price and that’s the end of it.
Offer to provide a 1 year home warranty on the item(s) that were suspect. No, you cannot evict based on what you describe.
Cant evict.....can be pissed off....but cant legally evict based on this.
Honor the cash for keys....don't even let the tenant know that the sale fell through IF it does..... better that they don't know..... act like all is golden and good to go. DO NOT give them that power or they may try and wield it again
As for the buyer.... they may just be trying to negotiate.....using some leverage that they just received.... I know I would. You either call their bluff and see if they cave or walk....or you accommodate the reduction in price and finish the deal.
Nope you can't evict for that.
Definitely do the cash for keys and get them out of there. It sounds like your tenant is grumpy about the whole situation and trying to make you lose a sale.
If the inspection didn't find anything than I would call their bluff. Have them send in an Hvac person to check things out. As a buyer you are looking for any way to save a few bucks and knock some money off the purchase price. Worst case scenario the buyer walks away and you find another one.
@Jeff Jackson What a dick move. Boot his *** out.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing