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Updated over 4 years ago on . Most recent reply
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Highest and Best Use
I'll try to keep this short. I signed a PSA to sell a property with an month-to-month tenant who failed to exercise his option to renew well past 90 days.
PSA stated that I will do my "highest and best use" to evict said tenant as the buyer's request the property to be vacant upon sale. I issued a statement to the tenant telling them they are month-to-month. I then issued another statement evicting them. They hired an attorney who proceeded to send us a letter basically saying the tenant has right to renew, hardship, etc. and that if we don't rescind the eviction notice by a specific deadline, they will proceed to sue us.
After telling all this to my agents, fully expecting them to tell this to the buyer, I waited and heard no response from them. I then contacted tenants attorney and rescinded the eviction notice as I do not want to get involved over a legal battle and the property either gets sold at the price I want, or the buyers can walk away and I keep collecting rent as before.
Agents proceeded to get very angry with me, told me I need to hire an attorney ASAP. They said I violated the "highest and best use" statement in the PSA by not hiring an attorney as well as by communicating with the tenant's attorney and that the buyer's now have a right to sue me.
Spoke with the buyers yesterday and it turns out they had no idea any of this was going on despite me telling the agents throughout the past two months to please inform the buyers in detail as to what is going on.
At this point I don't trust the agents as it seems they are wanting to do what's best for them and not me (this is a very well established, global firm) and I also feel as if they are pressuring the buyers and their attorney to go after me if the deal doesn't go through.
Is what they're saying true regarding "highest and best use"? Do I not have a right to refuse going to litigation?
Most Popular Reply
Tenants don't have a right to renew unless it's in their lease. Are there any hardship laws currently in place where you are at. Even in the most tenant friendly states the laws do not apply to commercial tenants. There should be specific statutes as to what month to month entails in your state. Since the other side has an attorney, I would hire your own attorney as well. This shouldn't be much of a battle. I would also continue to speak directly to the client and copy the agent on all correspondence.