Question for a realator... only please... or if you would know the answer?

Question

Ok so my grandma and grandpa are wanted to purchase a house on a lake, well the person they are buying it from have people renting it from them. they signed a contract with the people my grandparents are buying it from. Well my grandparents do not really want anyone else living in the house so would this contract break as soon as they purchase the house or does it not work like that??? The lady who is renting the house smokes and has a dog, and if it was my grandparents house they do not want that in the house. So i was wondering if the contract will break once the person who is renting it out sells the house???

Answer 1

no, the lease will survive the sale of the property.  The contract will have a phrase like "subject to tenants rights" which means the tenants get to stay until their lease is over.  Often in a situation like this, the seller approaches the tenant and offers them a payment to voluntarily terminate the lease early.

Guess what?  I'm not a Realtor, and neither are most of the people who will know the answer to this question.   I do have an MBA with an emphasis in real estate investment, and I am a long time landlord.   Real estate attorneys will know this answer as well.  Realtors take a few classes and pass a test oriented toward selling houses.  Your question is more about the rights of a tenant surviving the sale of a house.

Be careful assuming that Realtors are the highest authority on matters related to real estate.  Some are very knowledgeable , some are barely literate.

Answer 2

Your grandparents are going to be landlords, the tenants come with the house.   The tenants can not be evicted on whim, for the dog or for smoking.

Answer 3

Sometime on a rental contract, there is a clause that allows landlords to break a lease with a tenant.  In Pennsylvania, it is legal to give a tenant a written 30 day notice to vacate.  A reason does not have to be given.  Great landlord laws in PA!  But, at the closing, the tenants lease will transfer over to your grandparents, so if the clause exists in the agreement that was written by the previous owners, they can be asked to leave.

Answer 4

Leases follow the house. Granny and gramps can't break it. However. they can make it part of the contract to the owner that the house must be delivered vacant or no sale. That means the seller is responsible for buying out or somehow convincing the renters to leave. Have their buyers agent handle it.

If they never bought a house before and didn't get a professional to help them protect their interests they are foolish, indeed. My statement stands and they should get help NOW before they submit an offer.

Answer 5

You need to consult a realtor in your state.  In NY state, the lease survives transfer of title, meaning if the tenants have a signed lease they do not have to leave until the lease expires.  Now, most tenants will be gracious and once informed that the owner is selling, work out an agreement to break the lease in exchange for moving expenses etc.  But  they are not legally required to move.  Your grandparents should have it put into the contract that they property must be delivered vacant at closing. They should then verify that the tenants have moved out before they sign anything.