Buy with Eviction in Process

[Michael Krassos]

Hi all, need some advice from you seasoned investors and anybody with legal knowledge/background.

I have a good opportunity for a 2-family home. The owner however reported that since he raised the rent on both units a few months back, one of the tenants has stopped paying rent. He's unsure if she just cannot afford the new payment or if the tenant is taking advantage of her because she knows he is selling and likely wont go through the eviction process.

He offered to me to begin the eviction process but doesn't want to wait for the process to complete to close with me. He suggested he would turn the eviction process over to me. I have been using this issue as leverage and believe I can buy well below market value.

Questions: Should I buy with the eviction in process? Is it possible for me to assume the eviction in New Jersey?

[Bill Gulley]

No, if you're buying an entity that owns the property you can keep the eviction active. A sale transfers ownership and a previous owner has no right to follow through with any suit for eviction, they may seek damages of amounts owed as a debt, you'll need to start from scratch. Either he does it and you close when it's completed, (best way) or you'll get a tenant owing past rents (that you need assigned in your transaction) before you have a claim to start on. Otherwise, that tenant could stay and just pay you what you're due from your closing. The entire process may start all over. There are two issues here, eviction by an owner for possession, the other is a claim for past rents, the economic claim can be assigned, but not the issue of possession if ownership changes, IMO. :)