Tenants Caused Buyer to Backout of Sale

[trailblazer]

We rented our home while it was on the market. When the house went under contract we provided the tenants a 45 day notice to vacate the property as agreed by our lease. After 45 days, the tenants had failed to vacate the property. Now the buyer is walking away from the purchase of the home. Can we file a lawsuit against the tenants for the loss of the sale (ie profit from sale, and now ongoing mortgage cost, insurance, etc)? What other damages could we sue for?

 

[Gail_in_Georgia]

You are suing the wrong people.

You should be able to keep any earnest money the buyers put down.

You should also be focusing on evicting the tenants.

Gail

 

[trailblazer]

Thanks Gail. We are currently focused on the eviction of the tenants.

So I am curious of next steps. I was thinking the Buyer would be justified in walking away from the sale because the house was not vacated. Am I wrong?

 

[Gail_in_Georgia]

Much of this would depend on what your contract that the buyer signed stated.

For example, did they know there were tenants in place when they signed the contract? Typically a lease continues even if there are new owners. In cases of longer leases (i.e., yearly leases, for example) the tenants retain the right to continue to live there until their lease expires.

What type of lease did you have with your tenants? A yearly lease, six month, monthly, etc??

Gail