Moratorium holding up a sale: or is it?? Discussion

Moratorium holding up a sale: or is it?? Discussion

Sharon BarrosPro Member
Investor · Redlands, CA · Member since 2017 · 12 posts · 0 votes

Hello BP, 

I am looking to buy a primary SFR home that is currently a rental in California. The seller wants to sell and I want to buy. However, the seller has a tenant in place on month to month and they are current on rent ( I believe). The seller cares dearly for the tenant and feels bad asking them to move. They have not raised the tenants rent since 1994 so the tenant is getting a smokin' deal. The landlord is also afraid of the moratorium in place until June 30th, 2021.

My question is as far as I can tell (through research and speaking to an attorney) that the Moratorium only covers a non paying tenant not a current month to month tenant. And that the seller could simply notify the tenants with 60 day notice to vacate on the basis of selling the property with proof of escrow. (thus not an eviction) 

Does anyone else have experience with this issue and any advice on how to coach the seller on how to have the confidence to simply take action? They want to sell but they do not have a clue on how to remove the tenant without a headache and are afraid of conflict. 

 The home and the lot would be a great spot to raise my family and I want to help every party involved. 

Any Advice/stories/connections would be great! 

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  • Joe VilleneuvePro Member
    Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
    5y

    Just want to throw this in to complicate things even more.  If the tenant can't be evicted only if they are not paying rent, then what are the odds of that tenant, after getting wind of the "coming attraction", to start "not paying rent"?  What happens then?

  • Sharon BarrosPro Member
    OP
    Investor · Redlands, CA · Member since 2017 · 12 posts · 0 votes
    5y

    That is a great question! no one can seem to answer that clearly. The logical "attorney" speak would be that if the 60 day notice document was filed/served prior to any late pay and any notice was given to the landlord of financial distress then the tenant may be out of luck..... I was also told the tenant may also have to produce proof of financial hardship as well.

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