On the secondary real estate market, you can sometimes find very attractive houses and flats for sale. The valuation usually differs significantly from the average offer price of residential premises of a similar area or standard. So where's the catch? Well, it may turn out that you are buying a flat or a house with a tenant. Such situations also often occur during bailiffs' auctions. What is buying a property with a tenant and is it worth choosing?
Is it possible to officially sell a flat with a tenant?
From the point of view of law, nothing prevents you from selling the apartment with the tenant. The biggest advantage of such offers is that they can be up to 30-50 percent. cheaper than other similar flats or houses on the market. Usually, the practice of selling a flat with a tenant occurs in the case of bailiff auctions and then the starting price may be a maximum of 2/3 of the market value of the property.
Importantly, when an apartment is sold with a tenant, potential buyers must be informed of this fact. If this is withheld, the buyer may pursue his rights in court.
Duties of a buyer of an apartment with a tenant
The transaction related to the purchase of a flat with a tenant is subject to a certain level of risk. The buyer must be aware that in such a case he buys a flat in which its current residents may still stay. He cannot ask them to move out and check out before signing the purchase contract. Over time, it is the new owner of the property who takes on the problem of eviction of people living in the premises.
Ideally, the tenant with whom we are buying the apartment should leave it himself. If he does not do it voluntarily, the new owner of the property may initiate eviction proceedings, but he must take into account that it is a cumbersome, lengthy and unfortunately associated with the necessity of incurring certain costs. This is due to the fact that the evicted tenant should legally receive alternative housing from the commune, and these are very few. You can wait for free up to several years. We can find a replacement accommodation on our own, which will speed up the possibility of eviction of the tenant.
You cannot succumb to the temptation to "throw" an undesirable tenant from a purchased apartment onto the pavement. It is forbidden by law to use coercive actions or actions that intentionally make life difficult for this person. These actions could lead the tenant to sue the new owner of the harassment himself.
Watch out for life members
A tenant in an apartment you buy may be entitled to life imprisonment and it becomes almost impossible to evict them. Such a law actually means that a person can continue to live in the property until his death, as he has entered into a contract with the previous owner of the apartment. If we buy such a property, it is worth checking whether the tenant is not also a life annuity. This can be done by looking at the land and mortgage register.
If this is the case, then the deregistration of such a person from the apartment will be possible only if the buyer is ready to convert the right to life residence into an annuity that must be paid by the new owner of the property.
Is it worth buying an apartment with a tenant?
When it comes to the price of real estate sold with tenants, especially at bailiff auctions, you can save even several dozen percent of the real value of such a flat. However, a tenant is a serious problem for a new buyer if he wants to move into the new property immediately.