Expert: Sue Bernstein - 5/31/2004

Question
This is all actually for my mother, who is 65 years of age and I think she didn't know exactly what she was getting into and trusted her realtor. She closed escrow knowing that the space will be vacated within 30-60 days, which ends today. I think the previous owner was forced by the home association committee to sell the condo as they found out that she was renting out the place and not occupying it. The previous owner told the tenants that the condo has been sold and were given notice to move out. She has also told them that they didn't need to pay rent anymore.

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Followup To
Question -
Thank you so much for your prompt reply. The purchase agreement does not mention having tenants occupying the property. It lists that the property is owner occupied and that they need 30-60 days to vacate, which would end on the 31st of May. I've been since made aware by the tenants that they have a contract valid thru July 31st. From my research, I have found out that there is nothing else I can do but wait until the tenants move out 'til then. I do want to have the previous owner make payments to all associated costs until the tenants move out.

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Followup To
Question -
I have recently bought a condominium in San Francisco, but am unable to occupy the space as the previous owner was renting it out and the tenants have not moved out. My first question is what are my rights as the new owner of evicting the tenants? My other question is can I collect all costs associated with the house (i.e. mortgage, taxes and home association dues that I'm currently paying for...) from the previous owner until the tenants have moved out?

Thanks so much in advance for any input.
Answer -
A lot depends on your purchase agreement.  There is a part in it that discusses rental property and whether the property will be delivered vacant or whether the buyer will take the property with the tenant.  If you had an agreement for the property to be delivered vacant it probably would have been best to have held off closing until the tenant was gone. Not having done that you probably can go after the original owner for costs. All deposits should also have been turned over to you. If you had agreed to buy the property with the tenant you now have to look at what kind of agreement the tenant is under. If the tenant is on a month to month you should give him notice immediately.  If he is on a lease you are bound to the terms of the lease.  If the tenant is in violation of his agreement you can start eviction proceedings.  Check with you city to see what the regulations are concerning rental housing.  It probably would be helpful to seek out the advice of an attorney who specializes in evictions.

Hope this helps and good luck.

Sue Bernstein
www.SueBernstein.com
Answer -
Based on the above information I would definitely talk to an attorney as you certainly seem to have damages not to mention that you were overtly lied to and they might be liable for further damages.
One other question.....Did you close escrow knowing that someone was still occupying the property and were any arrangements made regarding a rent-back?

Answer
I'm not sure what your last question is.  If your mother agreed to close escrow and not take possession for 30-60 days was anything discussed re:compensation for your mother.  It sounds like you really should talk to an attorney and have him/her review the contracts and determine what rights your mother has.