I am set to close in a week on this deal.The seller has a month to month lease with tenants and they are planning to move out. Seller says they may need a few days past closing to be out. I do not believe that seller has given official notice to tenants. My buyer has no plans on renting but may be open if only a little time is needed. How should I structure closing to insure my buyers interests are met?
When we are buying occupied deals and we want the tenants out we usually just put in the PA that closing is contingent upon tenants vacating and removing all possessions from the premises. Also... there is a section in the PA that indicates when buyer will take possession. Be sure to state buyer takes possession at closing and any delay will result in a $100 per day cost to the seller. - very common.
@Ryan Mullin that's right!
I agree. I wouldn't take possession until they are all out and the house is cleaned and spotless. You don't want to have to deal with an eviction when you take possession. That sucks and postpones your cashflow.
However long they need to get the tenants out, that's how long you delay closing for.
@Calvin Fluker I would ask the agent to get copies of eviction notices from the seller. Texas is a landlord friend state. The whole eviction process take only 21 days start to finish.
The OP said nothing about eviction notices and yes Texas is a landlord friendly state and an eviction could take as little as 21 but with the information provided what grounds would there be for an eviction ?
Calvin- if you buyer closes with the tenant still in the property, it is their responsibility to get them out AND refund any deposit due when they do. The lease and terms of the lease become binding on them as well.
I strongly urge your buyer not to close until the tenant has vacated
I would suggest going and speaking directly with the tenant to see where things stand from their perspective. maybe a few days is all that is needed
Do not close until the property is vacant and cleaned...you don't want someone else's tenants or headaches...just my opinion !
If you close on the purchase & they promise to be out 1 day after, they are now your tenants & if they choose to be difficult, you are responsible for eviction costs, etc. do not close until tenants are gone & you do walk through to verify they took their garbage with them. If they leave behind what looks like a manageable amount of trash, it will add up & probably cost you $500+ in roll off fees.
Don't close..... send over a continuation of time addendum remind them if your getting a loan how much they will have to pay if you loss your loan rate lock......
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