selling rental house at end of month, but what if current renter does not leave and we have to evict ?

Question

the new owners are closing on the 30th, but I'm afraid that the current renter won't leave and force us to evict.
But that could void the sale since new owners won't want to deal with that.

Answer 1

You may be correct, it could possibly void the sale, if it is written into your contract that you are responsible to have the property vacant by closing.

Either amicably renegotiate that clause in the contract, or fight (through your attorneys) if the buyers try to back out.

Chances are good that the buyers do not want out of the sale, but they may want compensation for the delayed closing date, especially if they need to rent storage space and a hotel room while they wait for your house to be ready.

Whether the new owners want to deal with the eviction isn't the question. It's what the contract says as to whether or not you are responsible for the tenants being out.

Another option is to pay the tenant some money to get them moving faster. Do whatever is cheapest for you and gets the house closed in the quickest, most cost effective manner. Maybe the buyers will pay some money towards this too in order to help the tenant move on time.

Answer 2

Hopefully, your offer to purchase and contract of sale covered responsibility for which of you holds the bag in removing the tenant.

That being said, the same laws apply to removal of tenants during a sale as apply with no sale in the works. Proper notice must still be given, and the usual actions taken. If there is a written lease covering the tenancy, it must be honored by the new owners.

In my real estate practice, generally the responsibility lies with the new owners. Why? Simply because buyers have been known to walk away from purchases at the last moment, and now you have a seller still owning a property with renters on the way out the door and no rental income.

Answer 3

if you own the house and you want to sell it; you should have given the renter a 30 day notice on having to leave the house. Also in the contact that you sign with the renter it should have stated that there could have been a possibility of the house being sold. If that was not in the contract then you are out of luck, because now the renter has his rights. If the new buyer really wants the house he will work with you and the renter out of the house.

Answer 4

This would vary by locality, and by the terms of the lease. Your local apartment association or renters alliance can tell you the legalities in your area. In most states in the USA You are required to give the same notice to vacate as your tenant, ie 30days, 60 days, etc. If they do hold over, in most states you would proceed with the same steps to eviction that you would take if they were delinquent in rent.

Answer 5

Your buyers will have known that you had tenants occupying the property when they agreed to buy. The contract of sale will specify whether the property is being sold with vacant possession. Assuming this is the case, yes, you are responsible for making sure that the property is vacant on completion.