Existing tenant moved into nicer unit without asking

[Daniel Brooks]

Hello Everyone,

I'm set to close on duplex this Friday. We had problems with the seller producing a lease for the existing tenant.  After several weeks,  the sellers agent sent a lease but much of it was left blank including the signatures from the current owner and the tenant. I understand the lease is not valid without signatures. 

I visited the property a few weeks ago for the inspection. The tenant has moved into the upper unit (supposed to be vacant) that was previously occupied by the owner of the duplex. The upper unit is completely remodeled and quite a bit nicer than the lower unit in which the tenant is supposed to be living. 

Part of the draw of the property was the lower unit was rented and the upper was nicely remodeled which would make it easier to find a good tenant.

As it sits now, I'm supposed to close Friday and the tenant is living in a unit that he's not supposed to be in. I have no lease. The current owner moved across the county for work and it seems he's hoping that this will all get swept under the rug so that we can close.

I'm strongly leaning toward not closing until this is resolved.

What would you do?