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If there is a lease, the new owner will have to try to work a deal or evict the tenant.
I'm aware that they would at least have to wait for the lease to run out. The point was that your theory of it not being financeable was not a likely reason for it not to be owner occupied.
Who wrote THAT agreement? It has to be a scrivener error
It's not as ridiculous as it might sound. I was once an agent, and came across a situation like this.
The sellers were an elderly couple, and the property was a 2-family home. The sellers occupied one unit, and rented the other unit, at a nominal amount, to their youngest son, who was about 30-35 years old.
The couple wanted to sell the property, move to Florida, and relocate to a home on one floor, as climbing the stairs became difficult for them. Their adult son did not want to be forced to move, it was his childhood home and he had never lived anywhere else. The adult son had excellent credit, but couldn't qualify for a mortgage by income, so purchasing the property from his parents wasn't an option.
The only option left was for the couple to accept a selling price substantially less than market value (to which they agreed, considering the situation), and a special provision was drawn in the contract with the new buyer permitting their adult son a lifelong tenancy. The lifelong tenancy, however, was at fair market rental value for the unit, and did permit annual rent increases.
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.
This...
Non investment loans normally require owner occupancy in 60 days or so. If a lease is in place with current tenants, the lease must stay in place until its expiration date. So whoever buys it must do a loan as an investment property, not owner occupied property. That means more dn pmt, higher interest rate. Even if someone pays cash, they cannot occupy until the end of existing lease.
I'm aware that they would at least have to wait for the lease to run out. The point was that your theory of it not being financeable was not a likely reason for it not to be owner occupied.
Not financeable (conventional financing) because of the lease. That's why it's in the marketing remarks.
Not financeable (conventional financing) because of the lease. That's why it's in the marketing remarks.
It says can not be owner occupied. It does not say it's not financeable, those are 2 different things. If you read some confidential remarks only RE agents can read then that's different.
Obviously a badly written description of the home, all they had to say is tenant is in place until such and such a date.
You see, to be twisting things instead of saying that I am right and it's not just becuase of financing that an owner can not occupy because an owner can still pay cash and not occupy unless they wait for the lease to end or buy out the tenant. I get it, some people can never admit they are wrong, that's their weakness.
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.
Quote:
Originally Posted by Diana Holbrook
Not financeable (conventional financing) because of the lease. That's why it's in the marketing remarks.
You can easily do conventional financing...just that it would be investment property, not owner occupied. You couldn't do va loan.
It says can not be owner occupied. It does not say it's not financeable, those are 2 different things. If you read some confidential remarks only RE agents can read then that's different.
Obviously a badly written description of the home, all they had to say is tenant is in place until such and such a date.
You see, to be twisting things instead of saying that I am right and it's not just becuase of financing that an owner can not occupy because an owner can still pay cash and not occupy unless they wait for the lease to end or buy out the tenant. I get it, some people can never admit they are wrong, that's their weakness.
It does NOT say it cannot be owner-occupied.
It says it is not available for owner-occupant purchase. That sort of expression is common and typically connotes a lease situation that will not allow the owner to finance and occupy as a primary residence, with the usual best rates available.
It does NOT say it cannot be owner-occupied.
It says it is not available for owner-occupant purchase. That sort of expression is common and typically connotes a lease situation that will not allow the owner to finance and occupy as a primary residence, with the usual best rates available.
Okay I see what you mean and I see the difference, but someone not familiar with the term would think you can not live in it when you buy. As far as common, it must be a local thing because I have never seen it.
It''s a convoluted way of saying tenant in place with a lease until ____ . (Which would mean an owner can not occupy it, you can't use a conventional homeowner loan and you can't pay cash and move in, etc. )
*** Amazing investment opportunity *** Active lease through June 2019 *** Only available for investor purchase *** New Roof 2016 *** Central A/C *** Not Available for Owner-occupant Purchase *** Basement is unfinished ***
Who wrote THAT agreement? It has to be a scrivener error
My great aunt rented a 1 bedroom in a 4-plex here in California... the owner was elderly and she would take him to Doctor visits, do shopping and just a companion... he could no longer drive due to eye problems... she was in her 70's but was driving in her 80's.
In his will, unknown to her, he granted her a life estate to occupy the apartment.
When his Grand Daughter sold the property after inheriting from her Mom... the life estate was still in place and went with the sale...
When the time came to move to a retirement facility... someone told her to ask for a buyout... it was the only time I had ever seen her upset... she it would be a slap in the face to the memory of her friend.
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