All Topics / Help Needed! / Buying a house with tenants in place

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  • Profile photo of Stass1Stass1
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    @stass1
    Join Date: 2012
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    We’re looking at purchasing a house which has tenants in place, they are on a 12mth lease which doesn’t expire until March next year. We’re wanting to live in the home ourselves, is there anyway to remove them or must we see out their lease term. We’re in Victoria. Your help would be appreciated!

    Profile photo of landt64landt64
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    @landt64
    Join Date: 2004
    Post Count: 166

    You can ask for vacant possession and then the current landlords can give the appropriate notcie to get the tenants out.
    Landts

    Profile photo of Stass1Stass1
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    @stass1
    Join Date: 2012
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    Does that override the tenants lease then?

    Profile photo of ScottsdaleScottsdale
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    @scottsdale
    Join Date: 2011
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    If the contract specifies vacant possession then you should be ok. If not, you'll inherit the tenant and lease.
    As long as they are given an adequate Notice to Vacate there shouldn't be a problem. If they refuse to leave, you can delay settlement until they do vacate. It may take a few weeks but I believe an eviction notice can eventually be served if they're being particularly stubborn.
    I'm guessing they've just moved in during March so the last thing they'll want to do is to move again so soon. I would suggest being as helpful and understanding as possible, maybe even help them find a new place or offer to help with moving costs. This should hopefully soften the bad news but encourage them to acquiesce with what you want.
    Just make sure to run it by your solicitor first.

    Regards,
    Derek

    Profile photo of CatalystCatalyst
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    The above information is incorrect I believe. If the tenant is on a fixed lease you cannot make them vacate. They have an agreement (lease) that says they can rent rhe property for the time stated. Its a contract. You could offer compensation if they do agree to terminate the lease.

    Profile photo of Pat007Pat007
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    @pat007
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    Catalyst wrote:
    The above information is incorrect I believe. If the tenant is on a fixed lease you cannot make them vacate. They have an agreement (lease) that says they can rent rhe property for the time stated. Its a contract. You could offer compensation if they do agree to terminate the lease.

    However as a third party you are not subject to that agreement as you are not yet the property owner as stated in the existing agreement.
    the breaking of the lease is a matter of remedy / dispute between the current home owner and the tennant.

    It is in your best interests if you want vacant posession to run this past a solicitor so that the correct terms and stipulations can be added to the contract of sale (ensure vacant posession by date xxxx is a TERM and not a condition to give you adequate remedy in case of a breach of contract)  pretty much untill they are out you can have it so that you dont settle and so that the current owner pays damages for your additional expenses arrising from the breach. 

    It may depend on your state law, but i think the principle is the same accross the board, pretty much contract law 101 
     

    Profile photo of Nigel KibelNigel Kibel
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    Join Date: 2005
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    A valid lease will always come before anything else. So if you buy the property the tenants have the full legal right to stay in the home until the lease expires. You may be able to negotiate however do that before you commit to the property.

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    Profile photo of SMY7484SMY7484
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    @smy7484
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    If the leasing agreement issigned and valid for another 12 months, you definately need to wait until the lease expire unless the tenant seriously breach the leasing agreement.

    Another way to get out from this, is to offer the tenant cash incentive or negotiate with the tenant in order to mutually agree to terminate the leasing contract. You might want to factor this into your purchase price.

    Profile photo of Stass1Stass1
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    @stass1
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    What a awful situation, if we wait til March the house will be sold and we will miss out! If we go for it were stuck with the tenants we don’t want and wouldn’t be able til move in until may next year…I don’t understand why the owner would sign onto such a long lease, certainly very off putting for this prospective buyer!

    Profile photo of bardonbardon
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    @bardon
    Join Date: 2004
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    I have a house in Melbourne that I was considering selling recently. I wasn’t expecting to sell it and due to some external factors I needed to sell something and that was the largest liability so I decided to sell it. I put a tenant in, in Dec 11 on a 12 month lease (as the property was then a long term hold) and gave an agent instructions to sell In February 12. The long and the short of it is that the tenant has the legal right to stay in the house for the remainder of the lease regardless or what I or a buyer wanted to do. My tenant was very resistant to a sale and in the end I decided not to sell and am now selling another one instead.

    As a buyer then the only thing I could suggest is that you and the seller work out a sweetener with the tenant whereby they are compensated for moving out early. That will cost you more but it is the only way that I know of that you could get them out quicker.

    Profile photo of thecrestthecrest
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    @thecrest
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    As you know, there are 2 ways of paying for a roof over your head, rent or mortgage.
    Neither should be viewed as subservient or superior in title, especially where a fixed lease is concerned.
    In an occupancy battle, the fixed lease during it’s term is actually a superior document to your newly purchased title.
    My suggestion is to actually go and talk to the tenants who are most likely actually really humans and see what plans they have for their future and who knows what mutually agreeable arrangements might be possible. The vendor or agent can approve such a visit. Or if you don’t mind treading on toes, you can can go anyway coz it’s a free country. Provided the tenants will agree to see you.
    good luck.

    Cheers
    thecrest

    thecrest | Tony Neale - Statewide Motel Brokers
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    Profile photo of Verity01Verity01
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    @verity01
    Join Date: 2011
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    some of the above information is absolutely incorrect!!

    The lease agreement stands.  Its a legal binding contract.  As others have suggested, the most you can do is offer an incentive to the tenants by way of removal costs for example to see if they will consider moving early however the completely within their rights to stay.

    Profile photo of Verity01Verity01
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    @verity01
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    having said that we are in WA.  Suggest you contact REIV for proper clarification as it may vary from state to state.

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