Trying to buy a house, tenant was given notice, doesn't want to leave

[kcgirl]

What is the name of your state? North Carolina

I signed an agreement to purchase a home (for sale by owner) in November 2005. The tenant (on a month to month agreement, who was fully aware that the home was being sold) was given over 30 days notice, to be out on December 30th. I had utilities put in my name, am having furniture and appliances delivered on 1/2/06, and have a U-Haul truck sitting in my driveway. I was scheduled to move tomorrow, on 1/1/06.

I just heard from the current owner (I was trying to get the key from him), that the current tenant has now said he will not leave, and must be evicted. The owner file for eviction, and goes to court on Wednesday, 1/4/06. We are scheduled to close on Tuesday, 1/3/06.

I don't know what to do. What are my rights? I have put lots of money into this already (appraisal, homeowner's insurance, inspection, etc.). If I don't close by 1/6/06, then I will have to reapply for the loan, and my interest rate will be higher than the rate I have locked in. I have to be out of my current rental on 1/13/06. If I close as scheduled, can I file with the Sheriff's Department that the tenant is trespassing (because he has no current lease, hasn't paid rent, etc.)?

Am I totally screwed or what? Any advice would be great!

Thanks,
Kristi

 

[justalayman]

First. the seller should never allow anybody to take possession of a house until after closing. There are few exceptions but very few. The buyer should avoid it as well.

There is nothing wrong with closing asap. It just means you become a landlord for a period of time. Be sure you follow the LL/T laws if/when you do anything to your tenant.

Was the tenant given proper notice "over 30 days ago". If not this may lengthen things. Although it looks like 7 days is the requisit time. It does not state proper service.

Be careful about closing before the eviction hearing. It may confuse things. Technically the old owner would have no standing to evict if he no longer owns the home.

Is there any clause in your sales agreement that allows for damages should you not be able to take possession of the home after closing? Be sure you talk with your attorney to see if this would be applicable given the circumstances.

I believe this is the apprpriate code concerning rentals.

¤ 42-14. Notice to quit in certain tenancies.
A tenancy from year to year may be terminated by a notice
to quit given one month or more before the end of the current
year of the tenancy; a tenancy from month to month by a like
notice of seven days; a tenancy from week to week, of two days.
Provided, however, where the tenancy involves only the rental of
a space for a manufactured home as defined in G.S. 143-143.9(6),
a notice to quit must be given at least 30 days before the end
of the current rental period, regardless of the term of the
tenancy. (1868-9, c. 156, s. 9; Code, s. 1750; 1891, c. 227;
Rev., s. 1984; C.S., s. 2354; 1985, c. 541.)

There are some good tips in layman terms here you should be aware of. It explains the eviction process well.

http://www.high-point.net/hr/

 

[LindaP777]

There is nothing wrong with closing asap.

I disagree. Closing on a house with a tenant who refuses to leave, means you bought a rental property with a tenant that you have to evict. Eviction can be a long drawn out legal process (especially with a tenant dead-set against moving), something I'm not sure you want to get into. What does your purchase contract say in regards to the current tenant? What is the current owner doing to encourage the tenant to get out? (He can offer the tenant a large amount of money to be gone - $500? $1000? Or offer to pay their deposit on another home. Whatever it takes, 'cause money talks!) I would also insist on a "walk-through" after the tenant leaves and before you close. An angry tenant can do a tremendous amount of damage in 10 minutes with a sledge hammer.
But I would by no means close on a house with the tenant still living there, unless I wanted a tenant!

 

[justalayman]

I disagree. Closing on a house with a tenant who refuses to leave, means you bought a rental property with a tenant that you have to evict. Eviction can be a long drawn out legal process (especially with a tenant dead-set against moving), something I'm not sure you want to get into. What does your purchase contract say in regards to the current tenant? What is the current owner doing to encourage the tenant to get out? (He can offer the tenant a large amount of money to be gone - $500? $1000? Or offer to pay their deposit on another home. Whatever it takes, 'cause money talks!) I would also insist on a "walk-through" after the tenant leaves and before you close. An angry tenant can do a tremendous amount of damage in 10 minutes with a sledge hammer.
But I would by no means close on a house with the tenant still living there, unless I wanted a tenant!

That is why if you had quoted my complete statement:

There is nothing wrong with closing asap. It just means you become a landlord for a period of time. Be sure you follow the LL/T laws if/when you do anything to your tenant.

I did tell him that he would be a LL.

The OP had a concern as to the timing of the closing and his mortgage interest rate expiration. If the OP absolutely wanted to close before s/he lost their lock, s/he would not have much other choice.

Granted I did not explain the situations that may (or may not) come about as a result of proceeding this way. Your advice is most assuredly correct, but as I stated, the OP was concerned about his/her financing and my advice was from this perspective.

Additionally the OP is in a very tight time constraint to accomplish anything.

If you read the appropriate LL/T laws concerning eviction, they seem to take this a bit more seriously than we do up north here as well.