Legal Question in Real Estate Law in New Jersey

Re: Existing Tenant in Property for Sale

Any contract you sign should say explicitly that you are not taking title subject to the rights or possession of any other person. Moreover, you should tell the bank that you have to have a period of due diligence (i.e., an absolute right to bust the contract and walk away) that begins after you get broom-clean tenant-free access to the premises and runs for enough time to get the inspections done: 60 days is not unusual. Remember, it's no bargain if it is overrun with mold, termites, roaches, ants and structural/plumbing/electrical problems. Anything less than this should be a non-starter for a residential deal.

Re: Existing Tenant in Property for Sale

you should not buy anything sight unseen and should demand that the property be vacant at the time of the closing also buying a foreclosure presents additional title issues. make sure that your attorney has experience in these areas you can call me for free consultation at 212 683 8677

Re: Existing Tenant in Property for Sale

Many questions in addition to those of previous authors. Is there a written lease? If so, what does it say about tenancy if the property is sold for owner's occupancy? Is the property rent controlled? There may be many complications if there is a written lease and the tenancy does not end with a sale. You cannot force out a tenant who has a written lease, unless the lease states this can be done. Additionally, the tenant could hold up occupancy by stating in an eviction that a replacement apartment is not available and more time is needed to find a replacement, This could delay your closing if the Contract requires the property be empty. The lease should provide that in the event of a sale, the tenant must allow an inspection during reasonable time periods. This would allow you to have your inspections before closing. The contract should also require the seller to make any repairs necessitated by damage during the tenancy or resulting from the tenants's move. You should also have a kick-out clause that allows you to terminate the Contract and get all of your money back if the tenant is not out by a specific date. My overall suggestion, if the tenancy may cause any problems, look somewhere else.