Hello,

My husband and I have been in the process of buying a short-sale property for the last 3 1/2 months. We've gone through everything from appraisal, bank approval, PMI approval and are finally in an escrow period! All the while, there have been tenants, living month to month, in the house. The day we found out we got our last approval, and went into escrow, the selling agent called the tenants to let them know that the home would be sold on November 30th. In the last 9 days, we've encountered nothing but headaches. They're basically refusing to move for 60 days, citing that it's "their right." Now they want 90 days. We've found out they're regularly been late on their rent. We really want nothing to do with them, as tenants. We're buying this house to live in, ourselves!

What are our rights? What are their rights? I think our agents were so caught up on getting bank approvals, etc, that this whole problem got over-looked, but I'd love to address it before it's too late!

Any advice would be helpful!

While the tenant is considered a month to month tenant he still does have rights. Follow the CA eviction process starting with a notice to quit. If they do not leave after the notice then evict. You can also sue for any rent accured during the eviction process which can take a month. Here is the kicker, you can not start any of this until your have closed on the property, you are not the owner until then. You could ask the current owner to start the process.

You made one error by not demanding the owner evict them prior to your closing. Let it be their problem. Next if you close with them there, if they do damage ( serious damage to the house, it is your loss, so if they tear out the lights, punch holes in the walls, and drop die on the carpets are you ready to deal with it?

But as soon as you close, you are the landlord, so is the seller giving you their deposit, since you will be liable to give them their deposit once you buy the house and they move?

But they have to pay you the rent and you give them the notice,

I know you have been working hard on getting this house and its appreciated but to be honest you should have given them a notice of at least 90 days to vacate the property and get a place for themselves to live in. Now what you can do is buy the house and receive the remaining rent of 2 months from them and let them walk away and end the whole procedure with peace. Good luck and stay happy.

Thank you, all, for your responses. It's definitely a sticky stituation that seems to be a gray area for everyone involved.

No offense, Lucy, but I don't have a lot of sympathy for them... they've been late on their rent for the past 3 months, we've been working on purchasing this house for over 3 months, the home has been on the market for 8 months! To say that they were blind-sided by all this is a bit untrue...

Based on their relationship with the owner, lack of cooperativeness and friends who work in law inforcement, we decided to hold off on closing until they've vacated the property. You're right Frank, it would of/could of been a HUGE burden to us buying a home with them in it. We would have have to assume any damage they created...

Anyway, we're set to get keys on the 19th, as they will be gone middle of the month! We have a walk through Dec. 17th and at that time we're able to discuss any damages with the owner and work it out with him, as they would have been only his tenants.

Cool, I am completely agree with what you are saying and I want to wish you a good luck with your new home and Stay happy dear.