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  1. #1
    Join Date
    Sep 2008
    Posts
    14

    Default Can Seller Be Penalized if the Seller's Tenant is Not Out by Closing Date

    My question involves real estate located in the State of: New Jersey

    I am in Attorney Review of a property where there is currently a tenet renting there. The tenet does not have a lease.

    In the contract, my attorney put that the tenet must leave before closing.

    I asked my attorney what happens if he doesn't leave. He said that the closing just gets pushed off until he leaves. I said but that is crazy as I can get stuck forever. So he put in a clause that after 60 days, I have the right to back out with out a penalty.

    I asked if it can be put in the contract that if the tenet does not get out by X days, then I get a monetary compensation, or at least covers my inspection and lawyers costs.

    He said that it doesnt work like that and there is no chance of me getting anything out of it. He also advised me that the closing date in the contract is more of a "suggestion".

    Im a layman, but that doesnt make sense to me. If the seller wont get penalized for not getting the tenet out, then there is no real push for him to do it. If I break contract, I am hit with $10k but if the seller breaks then nothing happens?

    Thanks

  2. #2
    Join Date
    Sep 2005
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    Behind a Desk
    Posts
    98,846

    Default Re: Can Seller Be Penalized if the Seller's Tenant is Not Out by Closing Date

    If you agreed that the tenant's continued occupation of the premises would postpone the closing date indefinitely, but that you have the option of backing out of the contract if the tenant is not out within 60 days, then that's all you're entitled to - if the tenant is there after sixty days, you can walk away. If you are confused about the terms of your purchase agreement, you should have it reviewed by a real estate lawyer. If you agreed that there would be no other consequence to the seller if you walk away at the end of 60 days, then that's your agreement and you won't be getting additional compensation.

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