Quote:
Originally Posted by Eric Coffey
IF you are looking to buy, I am assuming there is no contract (yet)? If that's the case, you simply need to make sure the issue is addressed in your offer. If the tenants have a valid lease that extends past your proposed COE date, you will likely be required to honor it for the remainder of the term. As the new owner/landlord, you would be entitled to the pro-rated rent from COE onwards, but would also be the one to deal with eviction if necessary.
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This. The Statute of Frauds requires that any lease for one year or more be in writing. I am sure that is what they have. That lease cannot be terminated unless agreed to by BOTH parties. The lease DOES NOT terminate if the property is sold (to you). Unless... The lease agreement contains a "sale clause" that will permit the new owner to cancel the lease after given the tenants a notice before termination. But that clause must be in the LEASE agreement.
There are a whole other set of rules that address termination of leases as a result of breach by either party, but I don't think you will deal with this. Under these breach circumstances, you must go to court to remedy the situation.
Good luck and thoroughly review the signed lease and purchase contract. I will second the Eric's last comments...