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Updated over 8 years ago,

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1
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0
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Ben Cunningham
  • Investor
  • Portland, ME
0
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1
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Sale of Premises Clause

Ben Cunningham
  • Investor
  • Portland, ME
Posted

I am interested in purchasing a property n Portland, Maine. I will be financing the purchase using an FHA loan so I need to have one of the units vacant upon closing so that I can inhabit it for one year in accordance with FHA regulations.

I'm looking at one property that fits my criteria, but the only problem is that the leases don't expire for both units until the summer of next year and the owner doesn't want to have to kick out any of the tenants (I'm assuming because he doesn't want to be the "bad guy"). 

There is a clause in the tenants leases that reads the following: 

SALE OF PREMISES: Lessee and Lessor agree that this agreement may terminate at the discretion of Lessor upon sale of premises by Lessor. Lessor agrees to give Lessee 30 days written notice of the termination of lease due to the sale of the premises and Lessee shall vacate the premises at the expiration of the 30 day notice period.

My questions is whether or not the term "Lessor" could be also be interpreted legally as the new Lessor so that if I was successful in the purchase of the property that I could give one of the tenants a 30 day notice so that I could move-in? Is there any other ways I could make this deal work? I have thought of cash-for-keys after closing (risky since it may not work and I'm stuck with the tenants) or offering the seller higher than offering price and asking for him to give some of that money to one of the tenants to move-out prior to closing.

Thanks

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