Do first time home buyers with intent to live in property have to pay relocation costs to a tenant who lives in that property in la county?
Home is in foreclosure with Fanny Mae with a tenant living in property. There is a Month to month contract. If you buy with intent to live as first time home buyers do you need to pay them relocation costs as you have no contract with them and intend to live in the property as primary residence
- SlickterpLv 78 months agoFavourite answer
Month to month, you should not, no.
- curtisports2Lv 78 months ago
No, you do not.
In a 30-day state, you must give them 30 days or one full calendar month plus the days in the month notice is given. Example, you give notice December 15, they must vacate by January 31st. However, you cannot give notice until you are the actual owner. You can try to give notice before actual closing and recording of the deed, but the tenant can contest that in court. First time or many time buyer, it's the same. If there was a written lease, you must honor the terms of the lease, first time buyer or not.
When there is no written lease, in a 60 day state, the notice period is 60 days.
- Coffee DrinkerLv 78 months ago
If the home is located in an area with rent control laws, and those laws require the landlord/owner to pay the tenant's relocation expenses, then you probably do have to pay, unless the law provides some kind of exception for new owners.
But Fanny Mae will usually handle that before the property is listed for sale. They will foreclose on the current owner - at which point Fanny Mae becomes the owner. Then FM will get the tenant out - sometimes by offering a cash-for-keys buyout or sometimes through the courts. FM will then do any necessary repairs, and when they finally put the house on the market it will be vacant and move-in ready.
If you purchase the house while its still occupied by a tenant, then you should consult a local real estate attorney to understand what kind of legal issues you'll potentially have to deal with to get the tenant out. With tenant-friendly local laws and a tenant who doesn't want to leave, that could take several months and cost several thousand dollars in legal and court fees (and possibly relocation expenses if required). So if you do buy it while occupied, just be prepared.
- SimplytheFACTSLv 78 months ago
why aren't you asking a lawyer? most people answering will be clueless about local rent control laws
when buyer buys a home, the previous contract with the tenant comes with it..
what you have to do about the contract varies based on situation and local law..
even if its just a month to month, not written contract
note: a foreclosure was just sold in my area...with the tenant in place...
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- realtor.sailorLv 78 months ago
If the home is IN foreclosure Fannie Mae will get the tenant out prior to putting the property on the market. So by the time you contract for the property the tenant will be gone.Source(s): I sell Fannie Mae homes
- A HunchLv 78 months ago
If you are in a part of LA County with their own rent control ordinances you will need to read those.
CA Rent Control Law - effective 1/1/2020:
- ideally you want the currect owner to remove the tenant before you take possession. If you end up purchasing a property with an in-place tenant expect that you will end up with the tenant when you close. They might not leave willingly which will result in you having to evict them.
CA rent control does not cover landlords with fewer than 10 units. Assuming this your only unit, you will not incur any relocation costs when you are attempting to displace the tenant.
If the tenant has lived in the property for over 1 year, you normally have to provide 60 days notice. Because you will be moving into the home, you only need to provide 30 days notice to vacate.
- David SLv 78 months ago
No, you don't need to do that. However, the seller can try to negotiate for it. It's up to you whether or not you agree to it.
- R PLv 78 months ago
Probably not, but you need to google and read the landlord/tenant laws for your state to be sure. If you can't find an answer there, google the foreclosure laws for your state.
Or, you could consult your real estate attorney. He/She will know for sure.Source(s): FL landlord