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grace0304
Posts: 12
Registered: ‎05-12-2009
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short sale- tenant's right at the end of escrow?

Hi.  I've just opened an escrow on a short sale property where current tenants' have a 1 year lease agreement that ends in March 2012.   How long after escrow closes do they have before they need to move out?  Do I have any legally binding duties as the new home owner to current tenants?  I just want to make sure I am not greeted with a law suit after escrow closes... THANX!

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PaulReid
Posts: 503
Registered: ‎03-12-2010
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Re: short sale- tenant's right at the end of escrow?

Hi grace0304,

 

Do you have a copy of the lease? Typically a lease will have a section that addresses the terms of the lease should the home be sold. I would reveiw a copy of the lease and consult with a real estate attorney. I'm certainly no real estate attorney, but there is a very good possibility that their lease is valid and you may need to negotiate with them to see if they would be willing to move out prior to the end of their lease.

 

I hope that helps and best of luck,

 

Paul Reid | Inland Empire Market Manager
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Bruin99
Posts: 1,331
Registered: ‎06-25-2009
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Re: short sale- tenant's right at the end of escrow?


grace0304 wrote:

Hi.  I've just opened an escrow on a short sale property where current tenants' have a 1 year lease agreement that ends in March 2012.   How long after escrow closes do they have before they need to move out?  Do I have any legally binding duties as the new home owner to current tenants?  I just want to make sure I am not greeted with a law suit after escrow closes... THANX!


You're asking these questions after you've opened escrow?

 

I'm not 100% sure on this, but in most cases a lease is a lease and you can not force the renters out until at least the lease is up.  You MIGHT be able to negotiate with them.  Your legally binding duties would generally be the same as the prior owners.  I would make sure that you get the tenants security deposit from the prior owner - if you take over the property I believe you are legally responsible so better ask for it now, or at least know you're not getting it in advance if that is the case so that there are no surprises when the tenants request their security deposit back.

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Robb_Banks
Posts: 1
Registered: ‎06-21-2011
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Re: short sale- tenant's right at the end of escrow?

You are bound by the terms of the lease.

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Nanomug
Posts: 10,372
Registered: ‎05-30-2009
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Re: short sale- tenant's right at the end of escrow?

A couple of things:

 

-read the lease

-demand that the sellers provide you with the renters deposits.  California law mandates that the landlord keep this funds liquid.

-If the tenants have been there more than a year they get at least a 60 day notice to vacate.  

-The smallest notice they can get is 30 days

-take the lease to an attorney and review your options

 

If you want them to move out quickly then make them a deal that works for them.  Not knowing any of the circumstances I would get my agent involved to work with the tenants, the owners and the listing agent to issue a formal notice, broker a deal to get them out of the house before COE by giving them back their deposit, paying for one month storage and a rental truck.  It would save a lot of headaches if they don't move or they damage the house.

 

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Andiamo53
Posts: 2,084
Registered: ‎07-12-2010
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Re: short sale- tenant's right at the end of escrow?

Oh I smell yet another short sale rat! It's very possible that this involves a greedy owner who wants to collect some rent while not paying the mortgage. So while the bank is dithering around getting their counter offer together, the owners are making a profit on the property and the new owners will be stuck with the tenants until the lease runs out. The current owners don't give a rats ass about that. In fact the longer the bank takes in processing the paperwork, the happier the current deadbeat owners are.

 

As much as I hate the way banks are behaving, if I am right about the current owners, they are as loathsome as the banks, if not more so.