Buyer Does Not Want to Inherit a Tenant
Hi everyone,
I'm in the final stages of closing my first wholesale deal but my buyer has presented a problem that I'd need to solve and I'm not entirely sure how to go about doing so. To make a very long story short: there is a tenant currently in place in the home that had signed a rent-to-own agreement in 2010. This original contract expired in 2015 and stated that if the tenant could not provide the funds to cover the agreed upon purchase price then they would be ordered to vacate the home. She did not fulfill her end of the contract but she has now been on a verbal lease agreement with the owner since 2015 to continue renting the home, but without the ability to eventually purchase it. The tenant has been cooperative throughout my communication with her and I informed her early on that the status of her staying in the home is up to the eventual buyer. This is where my buyer comes into place; I have a gentleman that is extremely excited to purchase the home and he even drove an hour to my office today just to give me proof of funds for the purchase. However, he's not a typical investor so I'm having trouble explaining the tenant situation to him. He plans on purchasing the home as his personal residence and fixing everything himself so he can eventually sell the house for a profit later down the line. The problem I'm facing is that he refuses to sign the assignment of contract until the tenant has been notified and has agreed to leave the premises. I'm almost certain that I am not authorized to send out the official letter of notice, but my concern is that if I ask the seller to do so she would say no due to fear that the buyer may not close on the house and she would be left with a mortgage and no tenant. I've considered restructuring contracts but this is a hurdle I did not anticipate so I'm open to any suggestions.
Side note: my contract with the seller ends April 18th