Buying a home- that is currently leased

posted 2 years ago in Home
Post # 2
42117 posts
Honey Beekeeper
  • Wedding: November 1999

accorn:  If you are renting the house when your mortgage becomes effective, and it is specifically for an owner occupied home, then yes, you are committing fraud. You might get away with it, but I certainly would check out the consequences of lying. eg. would your insurance be valid if there were a fire?

Check the landlord tenant act legislation where you live. Normally there are provisions for giving a tenant notice before the end of their lease. You might have to pay their moving expenses for example.

Post # 3
378 posts
Helper bee
  • Wedding: June 2012

Could you put in an offer but specify the closing be no more than 60 days from the end of the lease?  If the home is rented the current owners might not mind being able to collect rent for another few months.

Post # 5
413 posts
Helper bee

I would consider providing the renters with incentive to leave. A friend of mine was the renter in a similar situation and the owner (seller) of the property offered him his last three months (until possession date) free in exchange for getting out early. You could see if they would be willing to move if you take over their first month’s rent (or two?). Or see if the seller would be willing to offer it, and then roll that cost into the purchase price of the house? It sounds like they’re likely out in October either way, so if I were them, I’d definitely move early if I were offered money to do it. And telling them now gives them lots of heads up to look for a new place (ie. if you set an August 1 possession date)

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