Tenant Without A Lease

[Nick Grewe]

I am in the process of buying a duplex. While doing a home inspection, it became clear there was someone living in the upper unit. After asking the realtor it turns out the tenant is on a verbal agreement with the current owner and has no physical lease agreement. If closing comes and the tenant has not vacated, what can I do and not do to have them move out? I plan on living in the top and renovating the bottom at the same time.

[Andrew B.]

Many landlords incorrectly state "The tenant has no lease" and have no idea they are completely wrong in the eyes of the law. Any time a landlord accepts rent in exchange for housing they have created a legally binding, month-to-month, verbal lease. You must treat this tenant as though he has a written month to month lease. 

You can ask the current owner to deliver the unit vacant. If they do not want to do it, you have to deliver your states version of 30 days notice to vacate, same as though they had a MTM lease.

I highly recommend asking for an estoppel letter to be signed by both parties. This will confirm items like rent and security deposit. You dont want to take possession and then find out there was a security deposit that was never given to you. (As new owner youre responsible for the deposit, even if its never given to you)