Tenants without a lease on new purchase

[Adam Duncan]

Hey there. We currently have a 2-1  residential property under contract. The property is a rental and has had the current tenants in it for roughly 5 or more years. My question is there is no formal lease in place and we are wondering if we need to have the current owner and the current tenant sign a month-to-month lease prior to us purchasing the property.   The property is in substantial disrepair. We will need to have the current tenants move out. What I am concerned about is with there being no lease in place right now if the tenants decide to dig their heels in is there any reason it would be difficult to evict them. We are hoping that they will go peacefully with a little bit of cash in their pocket. Any Advice would be greatly appreciated. 

[Teri Feeney Styers]

@Adam Duncan this should have been addressed in the contract to purchase but it sounds like it was not. (see paragraph 10.6.1.1 and the associated deadline in the Colorado contract to purchase. There is an assumption if left blank that there is no lease or occupancy that survives. However, Colorado does have notice requirements for tenants - even those without a lease - and that must be honored. I think it is 30 days. Anyway, do you still have an inspection deadline open? You could address this in the inspection objection: Property needs to be vacated  3 days prior to closing and buyer allowed to confirm. Tenants must be given proper legal notice and an extension to the contract written (if needed) to allow for this. If the tenants won't go then the buyer has the option to terminate the contract and have his earnest money released. (these are just the general points I would address for myself or a buyer. Your agent will need to flesh out the language).