Seller Won't Evict Tenants

[Jason Drayer]

We are currently in the process of purchasing a wholesale SFH. The deal is really good for the area we live in, so we are trying to find out the best way to approach this situation.

The seller has two tenants in the home. Both are on verbal month to month contracts of $500 (supposedly) rent per person. He normally has three people in the home, but one moved out when he learned the owner was selling. I have asked for an estoppel agreement to determine if what he has told us is what the tenants agree to.

This is a 2 week closing time frame, which isn’t much time to evict a tenant, but these tenants do not have any prior lease agreement nor anything in writing indicating a lease. The seller refuses to evict them because they are friends and he doesn’t want to do that to them. The seller has now tried to inform us that he will not provide needed documentation to the title company as a way to avoid him having to remove the tenants while we are in the closing process. The contract states that the home will be unoccupied at closing, so I don’t know if he is just trying to cancel the contract at this point.

The entire situation is very odd. I know people mention cash for keys, I could also look at trying to set up a shorter lease, or we could perhaps provide them a written letter asking them to vacate. Without a lease agreement in place I am assuming the COVID no eviction situation will not be a concern, but I am not sure.

Any words of advice on this crazy situation?

[Patricia Steiner]

Your contract states the property will be delivered to you unoccupied.  Unoccupied.  You should not accept anything else.  What the seller is doing is making his problem yours.  What if the tenants are not paying, don't intend to pay, and you have to evict them after the CDC/Federal Eviction Moratorium is lifted. What if they're not his friends - but people he doesn't want to have to pay to go.  Again, it's his problem.

A good deal is a good deal because you've made it so. Don't enforce the contract and watch your good deal go sideways quickly.  

My recommendation is not to close until the tenants have departed and you have walked it to ensure it is in the condition acceptable to you.  Ask the title company to seek the required documentation; that's their job - not yours.  Hire an inexpensive legal service - like LegalDash - to write a Demand Letter.  The seller is counting on you caving so he gets paid without having to get rid of the dead weight.  Show him your not caving and you will enforce your contract - and put the ugly back on him.

He knows what he's doing.  Don't fall for his show.  Hold to the contract and go get your good deal.