A student asks, How do I evict a tenant on a sale?

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The simple answer is: you don't.

When a property is sold it is sold subject to any underlying leases. There are possible exceptions depending on the lease agreement, but it is rare and may be hard to enforce, particularly in a residential situation.

One option is to incentivize the tenant's departure, that is, bribe the tenant to leave early. It may be true that the tenant would be open to an early departure for a number of reasons so it may not necessarily be a hostile situation. It would be important to get their agreement in writing and be sure to disclose the agreement. But remember, you can't guarantee the tenant will honor the agreement so don't make any promises, just state the facts.

It used to be that a foreclosure would extinguish the lease, but federal law changed that, so now the new owner must honor the previous owner's lease with the tenant.

There has been a lot of work done by AREC to define the best property management practices and we will review those recommendations at next week's property management class. We will also review the new eviction procedures put forward by the Alaska Court System. So, if you want to keep up-to-date on the latest property management practices, be sure to sign up for this 4-hour CE or Sales Post Licensing class below.

Hope this helps,

Jerry

Jerry Royse, at the helm of Royse and Associates, stands out in real estate education with over 35 years of experience teaching across 46 states and 5 countries. A seasoned educator, Jerry has trained thousands in Sales Pre-Licensing and Continuing Education, also applying his expertise as an expert witness in over 30 legal cases and successfully closing over 1100 homes as a Buyer Broker. His extensive knowledge marks him as a preeminent expert in the field.

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