Buying tenant occupied set of three townhouses in Delaware but would like one of the homes tenants gone for my occupati (foreclosure, mortgage)

[MsStill]

I am looking at buying the townhouses in Wilmington, DE soon. All the homes are being sold as a package deal and are currently occupied by tenants. I would like to demand that one of the homes be vacant upon closing so that I can occupy the home. Am I able to do this legally? Or would I have to file to evict said home after buying these properties? Has anyone dealt with a similar situation? Any suggestions?

[STT Resident]

You can't evict tenants unless they've done something wrong. Eviction is a legal court process. If the current tenants have a term lease you must honor those leases. If the tenants are on a month to month tenancy all you have to do is give them the required notice to leave in accordance with your state laws. In some states you're legally permitted to break a term tenant's lease so that you can move into the property. Check your state's landlord tenant laws which you'll probably find linked in the first "sticky" on the rental forum - or you can as easily google them using "(your state) landlord tenant laws".

If the tenants have term leases your other option is to offer them a "buy-out", i.e. a cash payment inducement to terminate their lease agreement.

Whatever you decide to do, remember that being a landlord is a business and it behooves you to prepare yourself by carefully studying your state landlord tenant laws. Good luck!

[MsStill]

I'm looking at the Delaware landlord tenant code and it SEEMS that I can break their term in order for me to occupy the property. I'm going to have to re-read it. But is it possible to have the current owner do that? Or do I have to wait until after closing?

[MsStill]

Thank you so much for your reply by the way!

[berniekosar19]

Originally Posted by MsStill

I'm looking at the Delaware landlord tenant code and it SEEMS that I can break their term in order for me to occupy the property. I'm going to have to re-read it. But is it possible to have the current owner do that? Or do I have to wait until after closing?

Looking at the Delaware code, there doesn't appear to be anything in it that says you can break the lease to take possession, even for personal use. What it does say is that you can give 60 day notice to the tenant that their lease will expire, and depending on if they have a month-to-month or year-long lease, they will have to vacate either at 60 days or at the specified ending date in their lease.

In fact, taken directly from the State of Delaware's Judiciary, these are the only situations in which a judgment for summary possession can be filed:

"Unless otherwise agreed in a written rental agreement, an action for summary possession may generally be brought:

by a tenant because the tenant has been wrongfully removed from or kept out of the unit (for example, the landlord has changed the locks and kept the tenant out of the unit without a court order permitting this).
by a new tenant because the old tenant is unlawfully continuing in possession of the unit.

by a landlord because the tenant has:
stayed in all or part of the unit after the expiration of the rental agreement without permission of the landlord;
wrongfully failed to pay the agreed rent;
wrongfully deducted money from the agreed rent;
breached a lawful obligation relating to the tenant’s use of the premises;
stayed in the unit for more than 15 days after dismissal when the housing was supplied by the landlord as part of the compensation for labor or services;
refused to give possession of a rental unit which has been damaged by fire or other casualty when the landlord needs to repair the unit;
been convicted of a class A misdemeanor or any felony during the term of the rental agreement which caused or threatened to cause irreparable harm to any person or property;

by an owner when the tenant has:
stayed in the unit for more than 5 days after the property has been duly sold upon the foreclosure of a mortgage."

So you have to honor the leases of the tenants and provide them with at least 60 days notice if you decide that you're terminating their lease. As for demanding the homes be vacant upon purchase, you can't make that a condition of the sale; well, you can, but there's no real feasible way an owner can comply with your request so your sale wouldn't go through. The current owner can offer the tenants cash-for-keys to vacate but the tenants are under no obligation to accept such offers. You have to remember that leases are legally binding contracts and there are very few exceptions in which a court will allow an outside party to unilaterally terminate that agreement.

[Rabrrita]

Originally Posted by berniekosar19

Looking at the Delaware code, there doesn't appear to be anything in it that says you can break the lease to take possession, even for personal use.

I also don't recall DE being a state with owner/occupancy early lease termination rights.

I wonder of the OP is reading the retalitory eviction section. That section does explain a defense to retalitory eviction is if the owner was going to reoccupay the premise as their own residence. BUT, the OP would first have to be in a retalitory eviction condition and even with that, they can't kick the tenant out, just they won't be held in violation for trying to get rid of the tenant.

OP: You need to reread the law or post the law you belive supports your position.

[MsStill]

landlord can overcome the presumption of retaliatory acts and proceed with filing an action for summary possession by showing:

a. The landlord has given appropriate notice under the Code, allowing early termination;
b. The landlord is seeking to recover possession to use the unit for landlords residence;
c. The landlord is not going to use the unit for rental for at least six (6) months;
d. The landlord intends to substantially alter, remodel or demolish the unit;
e. The condition complained of was caused by the tenant;
f. That the unit was in compliance on the date of filing the action for summary possession;
g. The landlord has contracted to sell the property;
h. The landlord is seeking possession based upon a notice to terminate, which was given prior to the tenant complaint.
i. The condition complained of was impossible to remedy prior to the time to cure;
j. That the costs of operation of the unit, including taxes have substantially increased;
k. That the landlord has completed a substantial capital improvement;
l. That the rent being demanded does not exceed that being charged to others in the same complex.

I figured b & c would allow for me to take possession? Or am I reading this wrong?

[MsStill]

Originally Posted by Rabrrita

I also don't recall DE being a state with owner/occupancy early lease termination rights.

I wonder of the OP is reading the retalitory eviction section. That section does explain a defense to retalitory eviction is if the owner was going to reoccupay the premise as their own residence. BUT, the OP would first have to be in a retalitory eviction condition and even with that, they can't kick the tenant out, just they won't be held in violation for trying to get rid of the tenant.

OP: You need to reread the law or post the law you belive supports your position.

I was reading it wrong & misunderstood then. Sorry for the mix up on my part. I'm guessing I need to forego on this sale then. Thank you all for your help! Very insightful.

[berniekosar19]

Originally Posted by MsStill

I was reading it wrong & misunderstood then. Sorry for the mix up on my part. I'm guessing I need to forego on this sale then. Thank you all for your help! Very insightful.

Yes, unfortunately that statute doesn't apply towards your situation. However, depending on the lease situation, you could still potentially gain possession within 60 days after closing, if the tenant is on a month to month.

[MsStill]

Originally Posted by berniekosar19

Yes, unfortunately that statute doesn't apply towards your situation. However, depending on the lease situation, you could still potentially gain possession within 60 days after closing, if the tenant is on a month to month.

I'll have to ask if any are on month to month. I know one has been there since forever and are "great tenants" the ones that are in the property I wanted to occupy JUST moved in & they were sketchy and vague about the last tenants.