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Updated over 8 years ago,
Purchasing a rental while eviction is taking place
Good Morning! I have an interesting scenario that's currently taking place and would like some feedback if anyone has the time. We are purchasing our second duplex and seem to be encountering a situation that we are not sure how to move forward on. Back in February we made an offer on this duplex and the offer was accepted. We knew there were some title issues so the closing would be a little over a month out. Tenants were in both sides of the duplex and the seller was fixing up everything listed on the city inspection. Moving forward, the title work took much longer than originally planned and we have signed 2 more addendums to the purchase agreement to extend the timeframe until closing. It was brought to my attention last week that the seller is evicting one of the sides however they have not moved out yet. We were asked to sign one last addendum to extend until June 9th to close but now I'm wondering what we could get stuck with if the tenants will not move out by then.
So my first question is: can you still sell a property in the middle of an eviction? If so, how does the new owner step in once that process has been started but not completed?
Second: If we decide not to extend the purchase agreement into June can we get our deposit back? I would think so since the contract would be void but again, never been in this situation before.
We want to purchase the duplex, I'm just uncertain on the problems we could be facing if these people refuse to move out....damage that will now be our responsibility to fix, squatters, ect.
If anyone is familiar with the situation and can give some advice we would appreciate it!
Thanks~