Real Estate

Tenant won’t leave .. what next

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  • Sep 1st, 2021 9:34 pm
[OP]
Member
Jan 12, 2011
218 posts
105 upvotes
Hawkesbury

Tenant won’t leave .. what next

Now that I jump through a whole bunch of hoops to get my house sold. That’s finally done now I have the money. This is where the fun starts the duplex that I bought one of the tenants has refused to move out. I rented a U-Haul truck for seven days to cover the laps between closings. Now I have a U-Haul truck with no place to put the furniture and there are no storage units available anywhere available.Condition of purchase was that it be a vacant possession and the property cleaned.
I’m at a loss for words at this point
29 replies
Deal Guru
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Mar 23, 2008
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kennyg1966 wrote: Now that I jump through a whole bunch of hoops to get my house sold. That’s finally done now I have the money. This is where the fun starts the duplex that I bought one of the tenants has refused to move out. I rented a U-Haul truck for seven days to cover the laps between closings. Now I have a U-Haul truck with no place to put the furniture and there are no storage units available anywhere available.Condition of purchase was that it be a vacant possession and the property cleaned.
I’m at a loss for words at this point
You need to talk to your realtor and your lawyer and find out what the situation is. Put your stuff in storage for now, even if it's not in your immediate area. Keep track of ALL your expenses. Hotel, storage, meals, laundry service... You can sue the seller for all those expenses, but you'll want to have receipts to back it up.

C
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Feb 29, 2008
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Tarrana & The Ri…
Shouldn’t the seller be in the hook for that? I feel for you, OP.
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Jul 3, 2011
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You didn't say if it's closed or still to close.
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kennyg1966 wrote: Now that I jump through a whole bunch of hoops to get my house sold. That’s finally done now I have the money. This is where the fun starts the duplex that I bought one of the tenants has refused to move out. I rented a U-Haul truck for seven days to cover the laps between closings. Now I have a U-Haul truck with no place to put the furniture and there are no storage units available anywhere available.Condition of purchase was that it be a vacant possession and the property cleaned.
I’m at a loss for words at this point
You say it's a duplex and just 1 tenant won't move out, so doesn't that mean there is another unit in the home that is now vacant? Can't you use this for temporary storage or even moving into in the meantime?
Do you want the duplex for entirely you/your family's personal use, or do you intend to rent out the units again?
Do you know if the current landlord did a proper legal eviction of the tenant with actual RTA/LTB forms?

Of course if you had vacant possession of entire home in your purchase agreement and the home was not vacant, you should not have closed on it as-is in the first place. You should be looking at options to extend the closing date until tenant leaves (having the sellers pay you for your costs daily until it's done), voiding the deal alltogether, or accepting the tenant to evict yourself but with proper compensation from seller via a holdback or discount on the sale price. Your lawyer should go over all possible options with you.

If you simply accepted taking the tenant and closed even though seller breached the sale contract, then either your Realtor or Lawyer messed up big time if they didn't advise you against it.
CNeufeld wrote: You need to talk to your realtor and your lawyer and find out what the situation is. Put your stuff in storage for now, even if it's not in your immediate area. Keep track of ALL your expenses. Hotel, storage, meals, laundry service... You can sue the seller for all those expenses, but you'll want to have receipts to back it up.

C
If OP already closed on the home and accepted the tenant, I don't think they would be able to sue the sellers. But not entirely sure, guess it depends on the details and wording of the sale agreement.
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rob444 wrote: You say it's a duplex and just 1 tenant won't move out, so doesn't that mean there is another unit in the home that is now vacant? Can't you use this for temporary storage or even moving into in the meantime?
Do you want the duplex for entirely you/your family's personal use, or do you intend to rent out the units again?
Do you know if the current landlord did a proper legal eviction of the tenant with actual RTA/LTB forms?

Of course if you had vacant possession of entire home in your purchase agreement and the home was not vacant, you should not have closed on it as-is in the first place. You should be looking at options to extend the closing date until tenant leaves (having the sellers pay you for your costs daily until it's done), voiding the deal alltogether, or accepting the tenant to evict yourself but with proper compensation from seller via a holdback or discount on the sale price. Your lawyer should go over all possible options with you.

If you simply accepted taking the tenant and closed even though seller breached the sale contract, then either your Realtor or Lawyer messed up big time if they didn't advise you against it.



If OP already closed on the home and accepted the tenant, I don't think they would be able to sue the sellers. But not entirely sure, guess it depends on the details and wording of the sale agreement.
It might also depend on whether the seller “neglected” to tell them that “btw, the house you think you’re moving into still has a tenant inside…”

C
[OP]
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Jan 12, 2011
218 posts
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Hawkesbury
The deal isn’t closed.. I’m going to be living in one side and my mom the other. They were served the proper N12 I think it is .. to end the tenancy. The ones that own the property now have had issues with these tenants for 4 months. They got a whatever to stop the eviction that was scheduled 2 weeks ago. I’m going to demand to know what’s happening and where the process is at. This is supposed to close sept 1…
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Jan 2, 2012
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kennyg1966 wrote: The deal isn’t closed.. I’m going to be living in one side and my mom the other. They were served the proper N12 I think it is .. to end the tenancy. The ones that own the property now have had issues with these tenants for 4 months. They got a whatever to stop the eviction that was scheduled 2 weeks ago. I’m going to demand to know what’s happening and where the process is at. This is supposed to close sept 1…
Talk to your lawyer on your options. I mentioned some options above:
1 - Extend the closing until tenants are gone, with seller paying you daily premium for your expenses
2 - Close and take on tenant that you will then need to evict, with appropriate compensation from sellers
3 - Void the deal due to seller's breach of contract

After N12 was served, the sellers also should have immediately filed an L2 form with the LTB to get in line for hearing (especially if they knew they were problem tenants). If they didn't do this, then you will be at back of the line so tenants may be able to stay for many many months more until the LTB schedules the hearing.
Remember the tenants have a legal right to stay in the unit (whether they continue to even pay rent or not) until the case is heard by the LTB and if successful, a sheriff can be scheduled to forcefully evict them.

If seller wants to avoid all this mess and liability, they may be inclined to offer the tenant "cash for keys" to get them to move out asap.
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Jul 3, 2011
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kennyg1966 wrote: The deal isn’t closed.. I’m going to be living in one side and my mom the other. They were served the proper N12 I think it is .. to end the tenancy. The ones that own the property now have had issues with these tenants for 4 months. They got a whatever to stop the eviction that was scheduled 2 weeks ago. I’m going to demand to know what’s happening and where the process is at. This is supposed to close sept 1…
Your opening post only said it was vacant possession. Did the agreement of purchase and sale state that you would need it for personal use?

If it did not, that N12 is ineffective. And if it did state for personal use, did you sign an affidavit?
Deal Guru
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Mar 23, 2008
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kennyg1966 wrote: The deal isn’t closed.. I’m going to be living in one side and my mom the other. They were served the proper N12 I think it is .. to end the tenancy. The ones that own the property now have had issues with these tenants for 4 months. They got a whatever to stop the eviction that was scheduled 2 weeks ago. I’m going to demand to know what’s happening and where the process is at. This is supposed to close sept 1…
That all would have been good to include in your original post…

C
[OP]
Member
Jan 12, 2011
218 posts
105 upvotes
Hawkesbury
licenced wrote: Your opening post only said it was vacant possession. Did the agreement of purchase and sale state that you would need it for personal use?

If it did not, that N12 is ineffective. And if it did state for personal use, did you sign an affidavit?
I did sign an affidavit
[OP]
Member
Jan 12, 2011
218 posts
105 upvotes
Hawkesbury
My mother is 74 and is getting really stressed over this. My thoughts are to move my mom into the vacant unit, put as much furniture as possible. Demand rent free and they pay storage for what doesn’t fit. When the other unit is vacant close the house deal at a lower price !
[OP]
Member
Jan 12, 2011
218 posts
105 upvotes
Hawkesbury
rob444 wrote: Talk to your lawyer on your options. I mentioned some options above:
1 - Extend the closing until tenants are gone, with seller paying you daily premium for your expenses
2 - Close and take on tenant that you will then need to evict, with appropriate compensation from sellers
3 - Void the deal due to seller's breach of contract

After N12 was served, the sellers also should have immediately filed an L2 form with the LTB to get in line for hearing (especially if they knew they were problem tenants). If they didn't do this, then you will be at back of the line so tenants may be able to stay for many many months more until the LTB schedules the hearing.
Remember the tenants have a legal right to stay in the unit (whether they continue to even pay rent or not) until the case is heard by the LTB and if successful, a sheriff can be scheduled to forcefully evict them.

If seller wants to avoid all this mess and liability, they may be inclined to offer the tenant "cash for keys" to get them to move out asap.
There is a paralegal that specializes in this crap, that is dealing with it on behalf of the owners. I’ll certainly ask the question. Thanks
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Jul 3, 2011
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kennyg1966 wrote: There is a paralegal that specializes in this crap, that is dealing with it on behalf of the owners. I’ll certainly ask the question. Thanks
Their paralegal is not who you should be speaking with, it is your attorney who should be made aware so that he can speak with you about anticipatory breach, plan for and advise you of your options which are several.

If your seller did not file an eviction notice along with that N12 and yor affidavit with the landlord tribunal they've lost some very valuable time. If they did it is unfortunate that the tribunal may cause the seller to default on his agreement with you but the seller nonetheless is your focus, not the tenant or the seller's paralegal as you shouldn't inject yourself into that directly.
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Step 1 - call your lawyer and have them send a letter to the seller indicating that you will not close until they satisfy the conditions. Furthermore that you will be suing them for any and all losses you incur as a result of their breach of contract.

Its up to the seller. They will need to pay the tenant to leave.

You have leverage here - of not closing. Keep your receipts, rent a hotel, or an Air BnB house by the week, etc. And sue the seller for every penny of it.
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Jan 15, 2010
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Do not close unless they give you a large discount off the purchase price.
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camzie wrote: Step 1 - call your lawyer and have them send a letter to the seller indicating that you will not close until they satisfy the conditions. Furthermore that you will be suing them for any and all losses you incur as a result of their breach of contract.

Its up to the seller. They will need to pay the tenant to leave.

You have leverage here - of not closing. Keep your receipts, rent a hotel, or an Air BnB house by the week, etc. And sue the seller for every penny of it.
In general it's better to come to an amicable agreement with the seller on how to proceed that will cover all the OP's financial losses for each day of delay due to this, vs the hassle/expense of needing to sue them in court later on.
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Jan 15, 2017
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kennyg1966 wrote: My mother is 74 and is getting really stressed over this. My thoughts are to move my mom into the vacant unit, put as much furniture as possible. Demand rent free and they pay storage for what doesn’t fit. When the other unit is vacant close the house deal at a lower price !
I think that in order to move your Mom into the vacant unit you will have to close on the purchase. Once you do that the tenants then become your problem. This is not advisable as you know you are inheriting problem tenants.

Seems to me that the tenants know their rights and are looking for the landlord to pay them to vacate. This ball falls to your seller. As others have mentioned, you need to use your lawyer to put even more pressure on the sellers to honour their contract with you.

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