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Old 05-11-2018, 01:31 PM
 
Location: 80904 West siiiiiide!
2,867 posts, read 7,103,247 times
Reputation: 1544

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What gives with this?
If I bought the house, who are they to tell me that I couldn't live in it? If there were renters, couldn't you just tell them to get lost?

I assume there's some sort of occupancy contract.

https://www.zillow.com/homedetails/7...?fullpage=true
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Old 05-11-2018, 01:35 PM
 
1,528 posts, read 729,987 times
Reputation: 2062
They can require anything by contract - if you don't like it, then buy something else. Maybe the owners are selling it and leasing it back like many businesses do with their real estate.
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Old 05-11-2018, 01:49 PM
 
Location: Cary, NC
31,648 posts, read 55,401,531 times
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Quote:
Originally Posted by ryanek9freak View Post
What gives with this?
If I bought the house, who are they to tell me that I couldn't live in it? If there were renters, couldn't you just tell them to get lost?

I assume there's some sort of occupancy contract.

https://www.zillow.com/homedetails/7...?fullpage=true
Betcha a nickel that it has a lease in place that has to be honored.

So, you would not be able to finance as a primary home until end of lease.
It is a bit of an awkward way to disclose, if that is the case, but selling a leased property subject to the lease terms is very common.
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Old 05-11-2018, 01:50 PM
 
Location: Florida -
8,250 posts, read 10,020,659 times
Reputation: 15127
It sounds like the owner has a conflicting rental agreement - and now wants to sell the house. Selling to an investor-landlord will help them do that, while selling to an owner-occupant will violate their rental contract.

If you really want to buy and occupy the house, ask the seller to talk with the renter about an early termination settlement (they may already have one).
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Old 05-11-2018, 02:15 PM
 
Location: Austin
7,084 posts, read 16,919,944 times
Reputation: 9503
Rental agreements always have to be honored. They are a contract. Even if ownership changes hand, the contract must be honored.

The landlord can negotiate with the tenant to move out early, but the tenant is not required to accept that. You can get owner occupied on most loans with a 60 day occupancy (some allow 90 days). That means, if you buy the house with only 2 months left on the lease, you can still obtain a regular primary residence loan. If it's longer than that, it's investment.
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Old 05-11-2018, 09:00 PM
 
Location: Tennessee at last!
1,870 posts, read 1,730,389 times
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The house next door to me has renters with a lifetime agreement. Yep, they can stay there for their life, and the rent is fixed at $600 a month. It does not even cover maintenance, repairs and the taxes! And one could rent the house for almost 3 times that amount!
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Old 05-12-2018, 01:29 AM
 
16,533 posts, read 17,592,629 times
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Quote:
Originally Posted by lae60 View Post
The house next door to me has renters with a lifetime agreement. Yep, they can stay there for their life, and the rent is fixed at $600 a month. It does not even cover maintenance, repairs and the taxes! And one could rent the house for almost 3 times that amount!
Who wrote THAT agreement? It has to be a scrivener error
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Old 05-12-2018, 02:53 AM
 
Location: 80904 West siiiiiide!
2,867 posts, read 7,103,247 times
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Quote:
Originally Posted by Electrician4you View Post
Who wrote THAT agreement? It has to be a scrivener error
For real! hahahaha
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Old 05-12-2018, 02:55 AM
 
Location: 80904 West siiiiiide!
2,867 posts, read 7,103,247 times
Reputation: 1544
Quote:
Originally Posted by MikeJaquish View Post
Betcha a nickel that it has a lease in place that has to be honored.

So, you would not be able to finance as a primary home until end of lease.
It is a bit of an awkward way to disclose, if that is the case, but selling a leased property subject to the lease terms is very common.
If that were the case, I potentially use the rental income to pay my mortgage if and until they renter's lease ended. That's a great idea, and would even possibly generate a little income....however, I need to move very soon (like in the next three months), so I think I might have to pass on this one.

Shame, it's a great house for the price.
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Old 05-12-2018, 08:52 AM
 
Location: Phoenix, AZ
1,248 posts, read 485,620 times
Reputation: 2871
Two problems come to mind.


If you buy a tenant occupied home, you will have to get an investor loan. Higher rates, lower loan to value, and you will have to honor the existing lease until it expires or the tenant can sue you.


If you lie to a lender about intending to live in it and then don't, that's mortgage fraud that comes with a myriad of unpleasant consequences.
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