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Updated about 9 years ago on . Most recent reply
Stuck and Need Help
Hello fellow landlords.
About 6 months ago I made an offer on a large triplex and shortly after the owner went into bankruptcy. Lawyers representing the people she owed money to contacted us and asked if we were still interested in buying it through the bankruptcy court process. Fast forward to today... we have a signed purchase agreement from the judge and we were one day away from signing. The house was supposed to be completely vacant by this time. Unfortunately, the day before signing we found out that the son of the original owner is not leaving. He is staying down in the basement. According to the lawyers representing the debtor, the son has been asked to leave and not even his mom can convince him to leave. Naturally, we do not want to inherit this tenant (he is not paying rent, nor does he have any lease or rental agreement). We also can not go back and easily renegotiate price to reflect the possible long and/or destructive process of legally removing this person once we take possession. We have tenants ready to move in ASAP and we were hoping to be signed and done today. In an effort to speed up the process, my agent had a conversation and offered the guy some money to be out by Monday.
I know that this is a legal matter and that anything I read should be verified with a local attorney but I would love some advice, suggestions and examples from anyone who has experience related to this issue.
My questions are:
If we sign the paperwork, take possession of the house and he is living in the basement, do we need to treat him as a tenant and start the eviction process or can I treat him as a trespasser?
If we sign and take possession do we have legal right to sue for the expenses occurred by dealing with this person, since the purchase agreement states that the house with be unoccupied and free of possessions.
If he leaves on Monday but leaves behind possessions, would we be required to store those items for any length of time?
Any other strategies for dealing with a situation like this?
I appreciate any thoughts and advice that you might have. Thanks
Most Popular Reply
Do not sign anything until he is out and you have completed the final walk through.
Go back immediately after closing and change the locks.
Do not sign anything until he is out and you have completed the final walk through.
Go back immediately after closing and change the locks.
(I don't know the laws in Oregon. My info is based on Texas.)
Do you have a signed lease for this "tenant"? If so, that should make the eviction process easier. I'd just buy the house and evict him.
Offering him money to leave is smart too. Eviction costs money, both in court fees and carrying costs.
If he doesn't have a signed lease, you'd think he'd be a trespasser. But, my understanding is that someone who takes residence in a dwelling is no longer a trespasser but an occupant. An attorney may be needed to help remedy the situation.
This is an interesting dilemma. Until you own the property, you can't evict because you are not the landlord or PM. It is up to the seller to clear the obstacle for you, since the house is (i presume) not being sold occupied with a lease in place.
What a pickle .....ask him nicely what his plan is if he was to move and offer him some help with moving ( u-haul,labor,find a rental the area ,1st months rent maybe )
This thing it's going to cost time and money
Good luck
If you buy and he's there, he's your tenant. Default lease terms for your state will apply. You will have to evict if you can't convince him to leave peaceably.
You should have a conversation with a landlord-oriented landlord/tenant attorney in the area. You need to do this anyway, so its a good time to find and hire one. They can advise you about the expected timeline and expenses as well as what you need to do for topics like storing possessions left behind.
Ideally you would refuse to close until he's out. But your ability to do that may depend on the contract. Its possible that refusing to close as scheduled would put you in default on your contract and you would lose the deal along with your time and money already sunk into it. Or, refusing to close might motivate the sellers to renegotiate or take more serious action to get him out. Read your contract. If it says the property is to be delivered to you vacant then you have a strong case for refusing to close until it is vacant.
#2 General Landlording & Rental Properties Contributor
You need to involve your lawyer in this situation and have him review your state landlord tenant regulations on this situation.
Based on what I know if he was not renting from his parents, simply one of the family living in the home, then he is not their tenant and does not become your tenant. He is a squatter without tenant rights. If you initiate the eviction process through your landlord tenant channels without engaging your lawyer first you are acknowledging he is a tenant. Let your lawyer guide you.
Your lawyer should be able to initiate the process to extract him from the property. Once you have ownership it may be as easy as having the police remove him or issuing a No Trespass Notice on him.
In discussions with legal or police do not ever refer to him as a tenant. He is not a tenant he is a unauthorised trespasser once you take ownership.
This is a matter for your lawyer to resolve.
I would suggest closing and then "cash for keys", but of course there is the risk of a lengthy eviction.
Good luck!
Evan