prospective rental property: owner has no lease agreement??

[Nathan Williams]

I'm considering putting an offer to a condo in Indianapolis as an out of state buy and holder... everything was looking VERY good until I learn the owner has no lease agreement with the tenants currently living there which appears to be some kind of roommate situation.  My immediate thoughts are how on earth could I even enforce the rent paid and the potential nightmare it might be if they refuse to move out.  

Im thinking I should insist on the owner getting a transferable contract signed by all parties before closing otherwise I walk away.  Any thoughts on this? thanks

[Kaiser J.]

This is not uncommon.  Just talk to an attorney because you will likely have eviction rights to the extent that they do not pay after close, but the attorney will be able to ensure it's done in the right way.  The seller is unlikely to execute a lease, since the seller would be stuck in it if you do not close.  It's probably not in your best interest either, since you don't know what sort of screening the seller has done on the tenant.  Easiest way to do this is for you to have the tenants apply for a brand new lease post-close so that you can make the decision yourself.