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My brother is currently looking at a home that is being sold but the owner doesn't live there currently - its currently being rented by someone.

I was just wondering - is buying a home that is currently rented by tenants something to be avoided, since he wants to buy it to live in it, the tenants will have to be kicked out.

I told him if he does put an offer in to have the current owner kick them out ahead of time as part of the offer and to also make sure the home is in satisfactory condition and not destroyed by wonderful renters before they jet.

Any thoughts or experiences on this type of thing..??
 

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Your brother should consult his lawyer before he agrees to anything. In Ontario (see http://www.ltb.gov.on.ca/en/Key_Information/170036.html) a tenancy can be legitimately terminated if the landlord is selling the unit or building to someone who intends to occupy it for their personal use. I suspect most provinces have a similar rule. But my understanding is that the current landlord is the one who is supposed to issue the proper notices to the tenant and make sure he vacates - your brother doesn't want to become liable for any of the obligations of the lease. His lawyer should advise him as to what wording should be in the offer to purchase, and what documentation should be required from the current owner, to make sure this happens.
 

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Make sure he gets a home inspection...renters don't always take care of the place like an owner would. (the best renters do though!)
 

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If your brother and the vendor agree to vacant occupancy as a condition of the sale it is the landlord's responsibility to give the tenant notice. If in Ontario, your brother may have to sign a form stating that he is purchasing the home for his own personal use or the personal use of a family member - since in Ontario you cannot evict a tenant unless you need the property fo your own use.

Your brother should then have the deal conditional on a post-occupancy inspection (about a week before the closing) so he can confirm the condition of the property before the deal closes.

We had friends who were in the same scenario about 8 years ago. When they went to inspect it after the tenants vacated, it was a MESS!!! The tenants had stopped mowing the back lawn (almost 1 acre) when they received notice and the grass had grown as high as our fríend's waist. They also left some of the walls and hardwood floors damaged as well as dead fish still in the tanks (not an easy odour to get rid of - even after the fish tanks are removed). Our friends went to their lawyer and negotiated with the vendor. The vendor ended up giving them cash back on closing to cover the yard maintenance that had to be done and the repairs that needed to be made in the house.
 

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I once worked for a couple who were selling 50 or so homes they had accumulated due to divorce.

Well one of these properties they had signed into the contract of purchase and sale that the home would be turned over in "clean" condition. First of all such wording is subject to interpretation. What is clean?

All tenants were served the proper forms etc. As luck would have it though one of the tenants who was occupying the three bedroom main floor apartment could not find another suitable place to live. The day of the closing she left her entire place with a couple grocery bags. It looked like she went out to walk the dog everything was still left in the place.

We got an emergency, call had to arrange a big cube van to remove three bedrooms worth of furniture. It was insane. The place got somewhat clean to our way of thinking under the conditions we were in. The new owner was furious. She got us to hire a cleaner. She then got us to go back and clean under the deck... the tenant left a ton of old beer bottles under there.

So yeah you might want to have a contingency plan in case the tenant does not vacate according to plan.
 

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Our current residence was a rental with a tenant removal clause and the closing was 27th. The owners wanted us to let tenants stay until 31 so we helled back 5k until the tenant left.

My thinking was that even 3 days as a landlord could hold us up 6 months in Ont.
 

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I have experience with this. The SALES process was a very trying time. Various RE agents need to bring their clients to view the suite before the clients will put an offer down, of course. And this agitated the renter I had. She eventually left on her own and after that point I had a clear run where RE agents could come and go as they pleased.

In my case, I was lucky that the tenant didn't trash the place. The rental was handled through a rental management company so an inspection was part of the deal, and the tenant was known to them, so also that helped ensure the condo was not left in a mess.

With tenants, it's very much luck of the draw, even after due diligence. You just never know.
 
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