The standard California Residential Purchase Agreement states on Page 3 of 10, Section 5, Sub-Section C Letter (i) Property shall be vacant at least 5 days prior to Close Of Escrow, unless otherwise agreed in writing. NOTE TO SELLER: IF YOU ARE UNABLE TO DELIVER PROPERTY VACANT IN ACCORDANCE WITH RENT CONTROL AND OTHER APPLICABLE LAW, YOU MAY BE IN BREACH OF THIS AGREEMENT.
The question is Yolanda, what did your Purchase Agreement reflect with regards to the Tenants? I recommend that you speak with your Agent & your Broker to get a clarification regarding this matter right away. Your Agent should have explained this to you before you signed the Purchase Agreement and clarified the status of the Tenants with the Listing Agent during your 17 day Inspection period. I also recommend that you speak with a Licensed Real Estate Attorney to further protect your families best interest. Good luck!
You do NOT want the tenants to damage the house though. See if the buyer & listing side agents will assist in donating toward the security deposit on their next house OR if you're not being booted from your own rental property, let the tenants rent back from you for a week or 2 and then they'll move.
You probably got an awesome deal on your short sale, don't blow it now & honestly, at this point, the seller MUST sign escrow papers to release your deposit back to you & they don't have to do that, they can force you to close, if the tenant is the only issue, and it's not a matter of the home being in a worse condition.
You need to play nice with the tenants to get them out & get them out in a neat & orderly fashion.