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Permalink Reply by Wayne Brooks on November 1, 2013 at 1:29pm

Generally, yes. State laws may vary though. I assume the purchase contract addresses whether property is to be vacant, or refers to any leases in place? How long is the lease? You could tell the seller to deliver vacant, or buyer won't close. Does the buyer want to occupy, or rent out at market value?

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Permalink Reply by Debbie Newsom on November 1, 2013 at 1:37pm

There are two issues I believe.  They leased the property after the short sale was in place. And, they rented 300-400 under market rental values.  We have not written an offer on the house.I'm pretty sure if we tell him what is legally right they just won't accept our offer.  The listing agent says the lease "has to be honored"  I'm trying to find out what is legally right.  It's in Henderson/Las Vegas Nevada.  Thanks for your advise.

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Permalink Reply by Wayne Brooks on November 1, 2013 at 2:03pm

I'm not sure what you mean by "they leased the property after the short sale was in place", as you haven't even made an offer yet. the owner is legally allowed to lease out the property, even though it may hurt his chances at a short sale. The seller is obligated to the lease, and will probably require the buyer to accept it. There is no legally right or wrong issue here, only contractual agreements. You can make an offer, contingent on the seller terminating the lease, but don't bet on that being honored, even if it's agreed to. Do you want to occupy the house, or get market rent for it? If the latter, just discount your offer by the lost revenue for the length of the lease. How long is the lease??? Otherwise, forget this house.

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Permalink Reply by Wayne Brooks on November 4, 2013 at 8:16am

Ron, doesn't that language, the tenants in foreclosure act, only apply to Foreclosures?  I didn't think it applied to short sales.

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