Rentals in Maryvale>Question Details

Edward Rigaud, Home Buyer in

is it legal for a seller to rent out a property after short sale has been approved by bank and the house is under contract?

Asked by Edward Rigaud, Fri Nov 23, 2012

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Up and until the sale of the home actually closes, or ptoperty is lost in a trustee sale, the current owner may rent it out if they please.

The question is does the person renting the house know it is for sale and under contract? Are they aware that they will have to move once the sale closes?

Also, you will want your purchase agreement to stipulate that the seller is to deliver the tenant occupied property to you VACANT. I home should be VACANT before you do your final walk through.

Best of Luck to you!

Kawain Payne, Realtor
0 votes Thank Flag Link Wed Jan 2, 2013
Edward, the primary concern or problem may be the fact that once you rent out the property this will impact the "bundle of rights" the new owner may be expecting to transfer with the property; especially the right if use. If the current buyer is not aware and have agrees to purchase the property with a lease-hold in place; this would give the buyer the right to cancel. This may cause the entire deal to fall apart which costs time and can ultimately result in foreclosure of the property.
Best of luck.. If you need more details you should consult a real estate attorney.
0 votes Thank Flag Link Fri Nov 23, 2012
It depends on the terms of the lease. It could be a 30 day lease just to keep a warm body in the house until you close escrow on your deal to buy the home.
I think we need more specifics here....
0 votes Thank Flag Link Fri Nov 23, 2012
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