have a home im looking to wholesale that has tenants in a contract to lease to buy for 55,000 in 2021 while the current owner is looking to sell this home for 35,000 cash. how exactly would this work?
Thanks so much!
Short answer is that a real estate attorney probably needs to review the documents between the current owner and tenant to determine what rights the tenant has and whether the agreement affects the owner's right to freely sell or transfer the property.
Depending on what exactly the lease/purchase agreement says, the agreement with the tenant could have conferred certain rights to that tenant and might be a "cloud" on the title. As a starting point, I would assume that a buyer would be stepping into the shoes of the current owner and would buying the property subject to the preexisting lease/land contract and the tenant's rights related to the preexisting arrangement. If the preexisting agreement prohibits the owner from selling the property to anyone else during the "lease to buy" period, then--at a minimum--I would require tenant consent. No one wants to buy their way into a headache.
Since we know that many tenants never actually purchase their rented property, you might consider finding out the tenant's current intentions. Perhaps they are willing to sign a new "clean" lease (without "lease to buy" provisions) or would release their "right to buy" and consent to the sale.
It all starts with a review of the agreements and understanding the intent of all parties.
and, here is the disclaimer...this is just one guy's opinion. This isn't legal advice, and you should talk to your own attorney.