 |
Tenants Won't be Out |
| |
 |
I will try to keep this as brief as possible. I am trying to buy a house in suburban Philadelphia. About 6 weeks ago I put in my initial offer on a house which was eventually accepted by the seller after a couple of rounds of counter-offers. At the time of the offer I indicated I wanted to settle as soon as possible but no later than mid-July. We ultimately agreed on July 18th (which is what is in the contract) because the seller informed me he had to give the current tenants 60 days notice.
10 days later we had conducted our inspections, negotiated a credit and completed all contingencies at which point I thought we had a Final deal and put earnest money in escrow. The following day the Seller gave the tenants notice such that we could settle as agreed on July 18th. The tenants indicated that they believed they had 60 days from the end of the month and the Seller ultimately agreed meaning the tenants will not leave until July 31.
I am not willing to settle and become a landlord. I will incur significant costs if I delay settlement until August 1st which the Seller refuses to cover. If the Seller cannot meet his end of the contract (ie. deliver a empty, free and clear property on the Settlement Date), what are my options? Can I get out of the deal and get my earnest money back? Can I sue for damages?
I am incredibly disappointed that it has taken 6 weeks and we still don't have an agreed to Settlement Date. I have lost substantial time to find a house to purchase and now find going significantly out of pocket while I try to find another house.
Any advice would be greatly appreciated. |
| |
| |
 |
It is true that if tenants are entitled to 60 days' notice, that is usually required from the first of a month. And it is understandable that the seller didn't want to give the tenants notice until it was sure that you had satisfied the contingencies and firmed up the contract. But as for the settlement date mentioned in the contract -- unless "time is of the essence", which isn't usual in a simple sales contract, the agreement is still in effect after that date comes and goes. The date listed in a typcial sales contract is pretty much just a target. If you really want to say "that date or forget the whole thing", you can ask your own lawyer to notify the seller that you are making time of the essence. It's a legal notice that pretty much says "We'll be there ready to close on that date. If you aren't, get ready to face the consequences." That's pretty strong legal medicine, and you wouldn't want to do it without careful discussion with your own real estate lawyer. Perhaps someone could spread some extra money around to solve the impasse -- offering the tenants an incentive to move early, or offering you something to wait the two weeks. Perhaps mediation would help. But in any event, your first step should be to consult your own lawyer. |
| |
|
Edith
Originally published on June 14, 2007 |
| |
| |
|
Back to Summary
|
< Previous | Next > |
| |
|
|
