The Process of Buying a Property with a Tenant in Place

Generally involves the following:

1. Review the terms of the existing lease: Buyers should carefully review the existing lease to determine the terms and conditions of the tenancy. This will include rent amounts, due dates, security deposit amounts and rules, maintenance responsibilities and restrictions on the use of the property.
2. Verify the tenant's payment history: Buyers should verify the tenant's payment history with the current landlord. This will provide an indication of whether the tenant pays on time and in full, or whether there have been any past issues.
3. Obtain estoppel certificate: An estoppel certificate is a document signed by the tenant that verifies the tenant's lease, payment history, and other agreed terms. It protects both the buyer of the property and the tenant from any false claims or disputes that may arise post-purchase.
4. Provide notice of change of ownership: Buyers should provide the tenant with written notice of the change in ownership, and provide information regarding how rent payments should be made and to whom.

As the new landlord, the buyer will have certain legal rights and obligations. These include:

1. Receiving rent payments and security deposits: Once the property has been purchased, the buyer will be entitled to receive ongoing rent payments and the security deposit from the tenant.
2. Providing maintenance and repairs: The new landlord is responsible for making any necessary repairs or maintenance to the property as specified in the lease, this includes routine maintenance and addressing any issues that were present before the buyer purchased the property.
3. Following eviction procedures: If the tenant does not comply with the lease terms or violates any other legal requirements, the buyer, as landlord, has the right to evict the tenant. However, eviction procedures must be followed in accordance with the law, including giving notice to the tenant and petitioning a court as required.

It is important to note that there may be limitations or exceptions to this advice based on local laws and regulations in the relevant jurisdiction. For example, some states or localities may have stricter tenant protections and requirements regarding eviction procedures. Therefore, it is advised that buyers seek legal advice from a licensed attorney familiar with the laws in the relevant jurisdiction.

In the event of any disputes or issues arising between the tenant and the new landlord following the purchase, it may be necessary to consult with a licensed attorney who can provide advice and guidance based on the specific facts and circumstances of the case.