Seller Renewing a Lease After Property is Under Contract

Seller Renewing a Lease After Property is Under Contract

Wichita, KS · Member since 2020 · 13 posts · 3 votes

Hey all, I recently purchased my first owner occupied duplex and inherited the tenants the other side. Once I put the property under contract I was given a copy of the inherited tenant's current lease, which was due to end a month after I closed. Come to find out, about a week after the property was put under contract, the seller renewed that tenant's lease for another year (when the current lease wasn't due to end for another 3 months and 20 days). Is this legal to renew/extend the lease of a tenant after the property has been put under contract? And, without disclosing that information to the buyer?

I found out about the lease renewal from MY TENANT when I notified them that their lease term was coming to an end. So not only do I look unprofessional in my first interaction with my new tenant, but I'm also stuck with the terms of some one elses lease not just for the one month as I had planned, but for another 12 months. 


Is there any action I can take here, or do I simply chalk it up to a learning lesson and don't let it happen again? Any advice is much appreciated!

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  • Contractor · Nashville, TN · Member since 2014 · 1k+ posts · 1k+ votes
    5y

    There is likely grounds for you to cancel the sale agreement and get emd back, double check with a closing attorney. But that's what I would do unless the tenants rent is high and they would pass your screening.

  • Gregg CampPro Member
    Member since 2021 · 32 posts · 11 votes
    4y

    I would agree you can probably cancel as it's a material change since you made the offer. If the tenant checks out it may be cheaper than finding another tenant and losing a month of rent. If your rent is a for instance $100 low, a month of vacancy would take a year to recoup. Did you go through with the purchase.

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