There may be a holdback of several months worth of rent in addition to any held funds if the tenant stays after the closing. Or as part of your offer to purchase it should be disclosed that you wish the property transfered vacant, as that is a significant condsideration. Second hand info should always be taken for what it is, that's why a popular phrase around foreclosure etc. sales is C4K = cash for keys. An incentive for the tenant to move out in an orderly fashion. Purchasing a multi-family isn't exactly like purchasing a single family home.

Hi Rita
It really depends on how the property is being rented. Is it a month-to-month, or a lease? A lease has a definite start and ending date, just like any other contract. Because a lease is property-specific, it takes priority over the sale. In that case, the new buyer could have the option of negotiating a buy-out, or just wait until the lease expires, and not renewed. If a person intends to purchase property and live in it, they should be aware of that fact. Hopefully all parties will be able to come up with a fair and equitable solution.

If you are purchasing a property, and going to live in it, I defininately recommend making sure the property is vacant before closing on the property. Laws will differ from state to state, but usually, you have to start all over when the property changes hands with any deadlines.
Melinda Elmer - Realtor