Terminating a tenant lease so I can move into a building

[Dan McGrew]

I live in Chicago, and I'm closing on a 4 unit property in a couple weeks.  We plan to make one of the units in the building our primary residence.  The mortgage laws, as I understand them, require us to move into the building within 60 days of close.  None of the units' leases expire before the end of that 60 day period.  I can't get a clear hold on the local laws as to whether I can terminate a tenant's lease without cause just due to the building being sold (and now me becoming the owner).  It just seems crazy to me that the laws would require us to move in within 60 days given that this might not always work out very easily.  Is that because the new owner can always terminate a lease at their choosing when they purchase a new property?  Or is the expectation that if timing doesn't work out, that I as the new owner offer a tenant some money in order for them to accept an early termination?

[Jason D.]

As I understand it, Chicago tenant laws forbid you from evicting a tenant without cause. They have to be in violation of the lease in order to be evicted. If they have violated the lease, there are different processes depending on the violation. The mortgage "law" that you have to move into the property within 60 days has nothing to do with the tenants, it is based on the loan that you have. You will probably have to acquire a different mortgage or risk defaulting on the current one because you will not be occupying the property. You can try to do "cash for keys" and offer a tenant a sum of money to mutually break the lease, but I would get legal advice before going through with that.