Five precautions before buying a dwelling with a tenant

Published on September 18th 2018

The details of this type of transaction must be studied in detail so that incidents do not arise once the change of ownership has taken place.

Becoming a homeowner in which another person lives to rent is somewhat more common than it seems. Sellers do not usually hide a reality that, while helping to negotiate the sale price downwards, causes the rights and obligations of the new owner of the property and the current tenant to come into conflict. Here are some tips:

1. Scoring and retraction. If you want to buy a house in which there is someone living with a rental contract in force, the first thing you should ask is whether the tenant has expressly renounced his rights of preferential acquisition.

2. Simple note. Before paying for any type of signal, it is essential to check the data corresponding to the situation of the house in the Land Registry.

3. Safe investment. Sometimes, that the house has a lease does not represent any type of inconvenience for the buyer, it is even better, as long as it has a clear investor profile.

4. Respect the contract. Another thing is that the new owner wants to occupy the house after signing. The contract must be respected until its completion if it is registered in the Property Registry. Thus, the new owner is subrogated to the existing contract.

5. Judicial procedure. The worst possible situation that can be presented to the new owner of the property is that after these months, the tenant refuses to leave the house voluntarily. If this problem were to occur, a judicial proceeding would have to be initiated to evict the tenant. In order to avoid incidents, it is always preferable that the three interested parties reach an agreement and commit themselves to comply with it.

Source: ABC Inmobiliario

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