evictions/cash for keys

[Leo Gregoire]

what's everyone's closing rate with cash for keys?

made an offer on a property only to find out later that one of the units was going through an eviction.

tried to extend our inspection contingency to no avail to buy us some time

ended up not being able to come to terms on how to proceed with seller

the last HOUR of our inspection contingency the seller offers to try and buy out (cash for keys) the tenant the next day (he had a property manager handling the eviction and wasn't even aware of it initially).

i get a (risky) oral agreement that even though the contingency window had passed, if the plan falls through my client will still get their EMD back

the next day the seller ends up buying out the tenant for a bit over $3,000 and now we can move forward with the deal without the headache of a problem teanant/ picking up an eviction.

[Kevin Sobilo]

@Leo Gregoire, this would not have been a contingency period issue in my area.

The contract would have stated that the unit would be vacant for closing. So, if come closing it was not vacant, the parties could negotiate something such as a price reduction for taking on the headache of eviction or the buyer could terminate the agreement for nonperformance and get the EMD back.

Yes, it would be good if the seller communicated any issues earlier because then they could be handled/negotiated earlier if needed, but for the buyer there should be no risk to their EMD at least the way we would typically write a contract in my market.