Seller Places Tenant After We Signed Contract

[Kennesha VanBurch]

I’m closing on a four-unit, multi-family residential home next month. There were two vacant apartments in the home when we put in an offer and had it accepted by the seller. Fast forward to our walk through with our 203k loan consultant and we learned that the seller had placed a tenant in one of the apartments without telling us. Two reasons why this is irritating:

1. We planned to renovate the apartment immediately, so that we could charge more rent.

2. He agrees to a one-year lease with the tenant knowing that he was selling it!

3. The studio was supposed to go for $650/month without renovations and he signed a lease with the tenant for $500.

What are my options in terms of breaking the tenant lease or some other option I’m not considering? I still want the home, but I’m baffled as to why the seller did this. Can the tenant lease be voided? The property is located in Baltimore, Maryland.

[Tim Herman]

@Kennesha VanBurch what does your contract say. Are the units to remain vacant. If not he has every right to maximize his income. In reality he can rent both units until close if their is no provision. There is the possibility you will not finalize the sale. You will inherit the lease upon close. You can offer cash for keys to break the lease. Good luck.