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Richard
Richard, Lawyer
Category: Real Estate Law
Satisfied Customers: 54308
Experience:  32 years of experience as lawyer in Texas. I'm also a Real Estate developer.
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I am looking to buy a rental that has a tenant. I want to

Customer Question

I am looking to buy a rental that has a tenant. I want to qualify the tenant and keep him as part of the purchase. His lease is up this month then he goes month to month. How can I ensure I make the purchase with a contingency that I first approve the tenant and that the tenant will sign a year lease with me? Seems like how can I make a lease with a tenant if I don't own it? And if its after the purchase the tenant could chose to not sign it..what is my best option?
Submitted: 2 months ago.
Category: Real Estate Law
Expert:  Richard replied 2 months ago.

Hi! My name is Richard & I will be helping you today! It will take me a few minutes to type a response to your question. Thanks for your patience!

Expert:  Richard replied 2 months ago.

This is a pretty common situation. You simply need to include in your purchase agreement with your seller that it's a condition precedent to your obligation to close that the existing tenant agree on or before closing to enter into a longer term written lease on terms and conditions satisfactory to both you and the tenant with the proviso that if that doesn't occur on or before a specified date, you have the right to terminate and receive your earnest money back. Then, you can approach the tenant with the situation and work out the terms of a lease agreement acceptable to both of you with the only condition to it becoming legally enforceable that you close the purchase of the property. If the deal fails to close, the tenant is not obligated; if you do close, the tenant is obligated.

Thank you so much for allowing me to help you with your questions. I have done my best to provide information which fully addresses your question. If you have any follow up questions, please ask! If I have fully answered your question(s) to your satisfaction, I would appreciate you rating my service as Good or Excellent (hopefully Excellent). Otherwise, I receive no credit for assisting you today. I thank you in advance for taking the time to provide me a positive rating!

Customer: replied 2 months ago.

would I be better to have the seller extend the lease (its a month to month) to 6 months to "lock in" the tenant then at time of purchase take over the lease? I am submitting an offer tonight so what language should I use in the offer?

Expert:  Richard replied 2 months ago.

Good morning. I see that you were submitting your offer last night. I'm sorry I was unavailable. Are you still needing assistance?

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