Properties with Tenants

Selling a property currently occupied by tenants means the owner needs to decide if it will be offered vacant at close of escrow, or keep the tenants in place. 

If tenants are to be given notice to vacate, the owner has the responsibility of observing the proper timelines and notice requirements.

If the current market seems favorable towards allowing tenants to stay because certain buyers are investors interested in maintaining a tenant-occupied property, then giving notice to leave is not necessary to deal with, and these terms need to be  clearly included in the buyer/seller contract.

However, if tenants stay in the property while it is on the market, the owner is still required to gain their cooperation for showing purposes, physical inspection(s) as required by the purchase contract between buyer and seller.

There can be exceptions:  perhaps a buyer is willing to take a property and close escrow without viewing the interior--but this is rare as practically all buyers at least want the opportunity to view the interior and professionally inspect the property, and often this is done the same day. 

If tenants are not cooperative, and the owner has nothing in writing with them regarding it being an active listing on the market, showings and permission to place a lockbox, proper advance notice time for showing the property, for example, the tenants may make it difficult for a potential buyer to even view the property.

The owner either has a good property manager or otherwise is knowledgeable about the local, county and state laws governing tenant occupancy and eviction to avoid the most common problems.

The REALTOR forms provided to a property owner cover the transactional and showing issues that may come up in the listing period, in order to make the process as clear as possible: contract addendum addressing delivered vacant or tenant in possession, if tenant is the purchaser, if seller remains in possession of property and tenants do not, income and expense statements, to name a few.

It is advisable for the owner to prepare in advance before putting the property on the open market.

Please contact me for a further discussion, I would be happy to have conversation with you.

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