Home Buying in Chicago>Question Details

Selina, Home Buyer in Chicago, IL

What optional I can have when I purchase a property but tenants currently living in there? Can I request the?

Asked by Selina, Chicago, IL Sun Jun 29, 2008

owner to ask the tenant leave the proterty? Does any one has experience that you can't move in until the lease is over? Thank youl

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Answers

5
It depends on the situation. If the current tenants have a lease beyond the closing date of your purchase, then you have to honor the terms of the existing lease (or you can try to negotiate with the tenants and get them to vacate earlier). Be careful though in that if the tenants stay beyond closing, it may be construed that you purchased an investment property instead of a primary residence (check with your lender on this). Also, what happens if the tenants stay past closing and they damage the property? Who gets the rent money for the time that you own the home and the tenant is living there? Too many unanswered questions can cause lots of headaches and potential financial problems. You may want to get an attorney or Realtor involved to help wade through the situation.

Best of luck!

-Daniel
2 votes Thank Flag Link Sun Jun 29, 2008
You should check with the seller to see if they have set up an arrangement with the tenants. I have a buyout in all my leases with my tenants in the event of sale. I can get possession within sixty days by offering my tenants one months rent. Prepared sellers often have a plan to deal with possible possession.

If not, I recommend having the seller attempt to gain possession prior to closing.

Worst case, if it cannot be done and you love the property, you can take rent from the tenant and give it back to them as an incentive to forfeit possession. This has worked well for me.

You will find that usually the seller has thought about the scenario. Eviction and forced possession in Chicago can be tricky. I recommend consulting your real estate attorney to request advice as well.
1 vote Thank Flag Link Mon Jun 30, 2008
Selina: Have your agent also double check state law regarding tenant/landlord matters, including if there are any state laws dealing with selling home with tenants that have active leases...
Good luck and Excellent question!
Tina Evans, Principal Broker
Web Reference: http://www.tinaevans.net
0 votes Thank Flag Link Tue Jul 1, 2008
Wayne, thank you for your suggestion, I will ask the seller's agent to deal with the tenant.
0 votes Thank Flag Link Mon Jun 30, 2008
Daniel, thank you for your information.
0 votes Thank Flag Link Sun Jun 29, 2008
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