Closing but have tenants for a month

[2bindenver]

Am I wrong? Is this a tenant occupied property?

[pretendingtowork]

It is currently tenant occupied. We close on 5/6. The tenants moves out on 6/6. They have been there for over a year already and know the house is being sold, they have a son in school and wanted to stay till it was out.


Basically, for the one month that the tenants live there, I don't want to make it a financial hardship for them. I know they are going to have to put down a deposit at some other place. I also know that the current owner has 30 days to return their deposit. I don't want to have them put a 3rd deposit out, but I still want to be protected.

[2bindenver]

Again, please refer to your Contract to Buy & Sell.

10.6.1.1 states you should have gotten a copy of the lease currently in place by the due diligence document deadline.

16.2 states you will get a credit for rent paid or due (whichever button was selected) PLUS the security deposit the tenants paid the Seller at closing.

There will be no 3rd deposit.

Do you have a copy of your contract? Do you have a copy of the lease? If not get them. Review, and if you do not understand ANYTHING see YOUR broker or their Managing Broker OR a local real estate attorney.

The POST-CLOSING OCCUPANCY AGREEMENT
(Seller Rent-Back Agreement) Note: This form is to be used only for short-term residential occupancy for a term not to exceed 30 days. A residential lease shall be used for a term longer than 30 days.

# 3 says Seller shall retain possession of the Property from date of Closing to xx days subsequent to Closing as set forth in the Contract (Term).

The Seller is not retaining possession. This is not the form to use in your situation.

[pretendingtowork]

So I am reviewing my contract and I see the n/a. But thinking back, when we originally signed, we were to take possesion on 6/6. After a bit of back and forth negotiation, we are taking the house on 5/6 but waiting for the tenant to move out on 6/6. But this contract was signed before that. Maybe that is why I am having issues figuring this out. Either way, I don't want to confuse myself anymore. I have a meeting set with my agent to go over this stuff.

10.6.1.1. All current leases, including any amendments or other occupancy agreements, pertaining to the Property. Those leases or other occupancy agreements pertaining to the Property that survive Closing are as follows (Leases): n/a


Thanks for helping with my confusion on this matter!

[Ultrarunner]

Could work out or be a huge mess.

Tenants have rights as defined by the rental agreement and applicable law.

Being a landlord is a business and business is always held to a higher standard.

What will you do if they don't move, don't pay or damage the property?

I always require and Estoppel Statement or Escrow doesn't close... this is for your protection and makes it clear the financial relationship of all parties... deposit paid, rental agreements, damages, unpaid rents... etc.

The last time I closed on a single family rental with a questionable tennant... I required 3 months rent be held in escrow and not released to the seller until the tenant had vacated and damages assessed.

Turned out to be a very smart move on my part because the tenant had decided not to move... thankfully, the tenant was related to the seller and the seller was able to make it happen because the seller wanted the $4,500 released from Escrow.

[pretendingtowork]

Originally Posted by Ultrarunner

Could work out or be a huge mess.

Tenants have rights as defined by the rental agreement and applicable law.

Being a landlord is a business and business is always held to a higher standard.

What will you do if they don't move, don't pay or damage the property?

I always require and Estoppel Statement or Escrow doesn't close... this is for your protection and makes it clear the financial relationship of all parties... deposit paid, rental agreements, damages, unpaid rents... etc.

The last time I closed on a single family rental with a questionable tennant... I required 3 months rent be held in escrow and not released to the seller until the tenant had vacated and damages assessed.

Turned out to be a very smart move on my part because the tenant had decided not to move... thankfully, the tenant was related to the seller and the seller was able to make it happen because the seller wanted the $4,500 released from Escrow.

That is my worry. I want to be nice but want to be protected at the same time. From what it looks like though the wrong forms have been filled out. There is a provision that I did read in one of the forms that if they aren't out by 6/6, they have to pay $300/day. But that doesn't mean they will vacate the property.