Regardless of if you are buying an investment duplex or single family home, if the property is rented, the tenant has rights that must be respected. Your use and enjoyment of the property will be impacted, so make sure you are okay with the situation.
Example #1: Bill and Mary are buying their first home and there is a tenant in the house with a lease that does not terminate until the end of the year. The new buyers are fine with that, and are planning their move in the new year. Other buyers looked at the property and told the agent – that’s okay, we will just throw them out when we own it. Not okay.
Example #2: Dale is buying a duplex in which the tenants have a month to month agreement. Dale requested that the seller evict the tenants prior to the close. The seller had made it clear that she was selling the duplex subject to tenant’s rights. Dale had to close escrow, then provide the hold over tenants with a 30 day notice of change in their occupancy agreement. If the tenants had been in a lease, Dale would have had to wait until the end of their lease period.
If you are looking at a tenant owned property, make sure you familiarize yourself with state and local laws.
As always, I’m thinking Real Estate – Dave Carney, Broker 360.259.4027
