Orlando Real Estate, Orlando Buyers Agent, Orlando Homes, Orlando Buyers Broker: Buying a house with a tenant

Buying a house with a tenant

Buying a house with a tenant

Many times a home buyer asks a general real estate question like  If I buy a house with a tenant, what do I do?  Home buying with a tenant in house

The question is a simple Real Estate Tenant question that a licensed real estate agent should be able to answer. 

 Here is my simple answer:

  • If the tenant has a lease, you need to get a copy of the lease because you will be obligated to continue to honor that rental lease for the duration after you buy the property. (There are however slightly different rules for buying tenant occupied REO properties) 

 

  • If the tenant is on a month-to-month, you might request the seller to evict them prior to closing (preferred) or you can make a new lease with them or evict them after you close.

 

  • If the tenant is not on a lease and not on a month to month than they have no business being in your house after closing.  This however can be a sticky situation, that should be addressed prior to closing, so that you do not create war with an uncooperative (and non-paying) tenant.

Before you purchase a home with an existing tenant, it is a must for you to have a written copy of the lease showing the terms and deposited monies which you are entitled to receive.  Don't accept a verbal assurance or rely on what the agent, tenant or seller say. 

I would also suggest that you also check with both the landlord and the tenant to make sure that there is not another secret lease with different terms...trust me, sometimes you will get conflicting stories.

These are just the basics for buying a house with a tenant..for a more definitive answer, please consult with your own real estate attorney.

Copyright @ Buyers Broker of Florida 2012 "Buying a house with a tenant"

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Representing ONLY the best interest of the Home Buyer...never the seller.

 Eve Alexander Orlando Buyers Agent

 

Comment balloon 4 commentsMike & Eve Alexander • November 02 2012 09:21AM

Comments

Here in my area, whenever the listing agent puts "tenant" as the occupant it's a real good head's up on who is occupying.  If the buyer doesn't want to inherit the tenant then it's best to proceed with very good due diligence.

Posted by Carla Muss-Jacobs, RETIRED (RETIRED / State License is Inactive) over 6 years ago

Eve, this can definitely be a sticky situation, and one that I would rather avoid if at all possible. While some tenants are very reasonable and cooperative, you never know how someone you don't know will react if pressure is put on them.

Sharon

Posted by Sharon Alters, Realtor - Homes for Sale Fleming Island FL (Coldwell Banker Vanguard Realty - 904-673-2308) over 6 years ago

Tenant occupied homes can present many issues in the sale transaction Eve, beginning with the challenge of showing.

Posted by Al Raymondi, Ormond By The Sea Florida - Home and Condo Sales (Ocean View Realty Group in Ormond By The Sea Florida) over 6 years ago

Interesting. I work in three states and th erules are different in each. In DC we have the Tenant Opportunity to Purchase Act (TOPA) which governs the process for selling a property with a tenant. Virginia and Maryland allow for you to give notice and kick them out.

Posted by Dana Hollish Hill, Lead Associate Broker (Hollish Hill Group, KW Capital Properties) over 6 years ago

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