TEXAS PROPERTY WITH SQUATTERS

[Russell LaBelle]

Wednesday I signed a contract to purchase a property in Dallas and wired my EMD. I was told the property was vacant. Last night I was told the opposite that there are people still living in it. There is nothing in our contract stating a leaseback. What are the rules to get people out of the property if they are still there after closing? Again, this is Dallas, Texas. Please advise. Thank you.

[Bret Allen]

You may want to consider having your agent, or someone local, walk through the property the day before closing.  The TREC contract used heavily in Texas and common law contract principles give certain rights and demand certain actions.  If the owner cannot deliver possession to the property at closing then a seller is usually in breach.  In such cases, you are entitled to your earnest money back and might be able to sue for additional damages.  

Practically speaking, If the owner cannot get the people out by closing then you know the owner doesn't control the people and you will likely have a fight.  Don't get too discouraged too fast.  If no lease exists and the squatters are unfriendly to the owners then use these facts to negotiate a better deal.  Yes, you might have to hire an attorney.  Yes, you might have to deal with some items destroyed in the house.  Yes, it may take a little time and money.  However, these things don't have to mean the deal is dead - but maybe renegotiated.  

An eviction case in Texas is relatively quick.  Even if it is appealed you can usually get through the case within a few months.  In most cases, neither the first hearing in JP court or a County Court appeal hearing require a live witness from the the out of state investor/owner.  

You should consider contacting a Texas attorney familiar with these.   

Good luck

**Bret is an attorney licensed in CA and TX, but he is not your attorney.  This message is not intended to form an attorney client relationship with anyone and is for general purposes only.  You should not rely on a post in a forum as your legal basis for any action.  You should hire your own attorney as the actual facts of your situation may substantially change the advice given to you.