Buying occupied property

[Harry Nima Zegarra]

I just agreed to buy an occupied property through a wholesale transaction. The owner's daughter and her boyfriend live in the property and don't have a lease agreement. It seems the boyfriend paid some mortgage payments (which were way lower than the rent market value) but he doesn't have any papers for that. The owner is tired and cannot get them out, and that's why she agreed with the wholesale agent to sell it. Now, the daughter seems to have a place to go and may be more flexible than the boyfriend. What would you recommend on how to proceed...

I understand there is the option for cash for keys... but not sure if they will accept it... seems the boyfriend was trying to appropriate the house. What happens if I close the transaction and they haven't left? Are they technically guests or tenants (as seems they may have contributed with some mortgage payments)... should I hired a lawyer even before closing? and would they have any liability if they trash or destroy part of the house before leaving?

Thank you in advance.

[Mike McCarthy]

@Harry Nima Zegarra I would definitely involve an attorney. Even if there’s no paper lease, there is likely a verbal lease which has to be ended correctly. If you do need to evict, you’ll probably want a lawyers help regardless to make sure you do it right.

Another option is to get the current tenant to sign an estoppel letter, which basically verified what he pays in rent, how much security deposit is in escrow, and that it’s a month to month lease. This will verify what the owner thinks, and will help when you do terminate the lease, help make it a cleaner process.

I wouldn’t automatically assume a cash for keys or eviction. It could be that they are just enjoying really cheap rent. But obviously plan for it just in case.