No Cause Lease Termination For Owner Occupied Loan

[Jake Thompson]

Looking for some advice regarding house hacking a property that has leases in effect. This may be a question for an attorney (specific to my state) and the underwriters, but I figured I would ask here as well.

Looking to buy a 4 plex in Oregon, the soonest lease expiration is end of May. According to VA, you have 60 days to move in, without a "valid reason" to extend. Lender says it is ok to terminate a lease early when selling to someone who will owner occupy, and therefore waiting until the end of lease will not be a valid reason. He sent me a link to the Oregon Community Alliance of Tenants website, which appears to confirm what he said. I also checked the state laws and I think they confirm that you are allowed to kick them out in this case. But then again I'm not an attorney and the actual laws are hard for me to understand because they are so technical.

It doesn’t seem right to me that you could just kick someone out in the middle of the lease, without cause. Other websites and property manager I talked to says you can’t unless there is a specific clause in your lease that says so.

Does anyone have experience with this? I imagine it’s a fairly common situation in the world of house hacking.

[Wayne Brooks]

Well, there is nothing to convince the seller of....he won’t be kicking anyone out, you will.