Eviction if no contract exists while I'm buying the property

Real Estate Broker · St Petersburg · Member since 2014 · 2k+ posts · 2k+ votes

5y

@Ben S. i would make the current owner, as a part of the contract, that the unit must be vacant before closing. It doesn’t matter that he doesn’t have a lease, you will be stuck with him and must evict.

The federal eviction moratorium has now expired, but not sure what the state or government has decided in the area you are purchasing, as some have extended the moratorium till the end of the year.

Proceed with caution….

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Colleen F.Pro Member

Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes

5y

@Ben S. he is their son and they won't give you any read on his plans? I would insist on deliver vacant. If they represented there is no lease and the tenant produces one, you have an issue. Talk to your lawyer but I would also have the sellers sign that there is no lease and they will not sign any lease with him prior to closing(if they do you get stuck with it). You should get an estoppel agreement with him before closing if he will still be there on closing to confirm his terms of agreement. Then you could give notice to him.

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Ben S.Pro Member

OP

Member since 2020 · 48 posts · 25 votes

5y

Originally posted by @Colleen F.:

@Ben S. he is their son and they won't give you any read on his plans? I would insist on deliver vacant. If they represented there is no lease and the tenant produces one, you have an issue. Talk to your lawyer but I would also have the sellers sign that there is no lease and they will not sign any lease with him prior to closing(if they do you get stuck with it). You should get an estoppel agreement with him before closing if he will still be there on closing to confirm his terms of agreement. Then you could give notice to him.

Thank you for the advise Colleen! Unfortunately it's too late to modify the contract that they must deliver the property vacant. But maybe I could go the estoppel agreement route to ensure that I know exactly what is going on with his situation.

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Tim Herman

Member since 2018 · 2k+ posts · 1k+ votes

5y

@Ben S. He will be your tenant. There is a verbal tenancy agreement with the previous landlord. Did you ask for the duplex be vacant on closing or did you get estoppel letter signed by the tenant and landlord stating their verbal agreement. Did you prohibit the landlord from agreeing to new leases. As soon as you close you can send a notice of non renewal. Check your landlord tenant laws and see how much notice you have to give him, Don't know if there are any covid restrictions still in place in MN.

1 Reply

Joe Scaparra

Investor · Austin, TX · Member since 2013 · 662 posts · 1k+ votes

5y

This deal smells bad and if you are not careful you could be getting yourself set up. The outside observer can see it! Just review the facts. 1. Seller want to sell property. 2. The upstairs unit is rented to their son, who has no lease but pays half of what you plan to charge. 3. Forbidden to talk to upstairs tenant, do not have an estoppel letter.

You must be getting a helluva deal because any logical investor would be very confused as to why the seller is acting this way! Now you ask the question: "My question is if this person in the upper unit doesn't have a lease with the current owners when I purchase the place do I have the right to remove him from the property right away if he doesn't cooperate?"

If you mean remove him without a court order.........Absolutely NOT! Is a verbal agreement binding? Yes indeed, certainly if there is no dispute between parties that have the verbal agreement.

Could the court hearing play out like this:

We are here in court because this new owner is trying to raise my rent. I have a verbal 10 year agreement with the previous owner to pay $XXX rent! Judge calls previous owner to the bench and asked is that correct. Previous owner state yes indeed correct. Judge then ask current owner did you receive any assurance that the current tenant had a lease. Uh, your honor, I was told by the previous owner that the tenant had no written lease but I was told that the current renter was paying rent at half the rate i plan on charging. Judge: So you were aware some kind of agreement was made but you did not get the details of that agreement, and nor did you get an estoppel letter that would have outlined the agreement the two other parties had.....is that correct! Yes your honor. Case dismissed.

Just be prepared to bend over and get a broken broom stick stuck up your ***. You are being set-up to pay cash for keys from your existing tenant. Good luck.

1 Reply

Colleen F.Pro Member

Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes

5y

@Ben S. you should have what the lease agreement is (in the pre-closing estoppel) and you should have in writing what the sellers represented the agreement to be now. I am not sure if you could append the contract such that it verifies there no lease statement and it prohibits them from signing any agreements with the tenant. if they won't sign such an addendum you may have your answer.

When you do the inspection you will get an opportunity to see this unit definitely also do a walk through on closing.

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Scott M.

Real Estate Broker · Rochester Hills, MI · Member since 2009 · 2k+ posts · 2k+ votes

5y

Vacant or pass. I would not even think of moving forward on this deal if I was in your situation. With all the local/state COVID restrictions on place, not a chance. Prior to COVID sure. The parents may give him a lease before you buy it and who knows what they will agree to. both in terms of rent amount and term. This is really a situation that could stymie you for a long time. Nip it in the bud now.

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Eviction if no contract exists while I'm buying the property

Eviction if no contract exists while I'm buying the property

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