Yea I talked to a RE laywer and he said that even if the seller could provide me clean title and close…most likely the tanant buyers would add me to thier lawsuit. (Like you said…Seller would make HIS probles MY problems).
The lawyer said, stay away from this deal untill the lawsuit is over…which could take years.
As far as getting the the tenants to sign…Not going to happen. They made huge signs and put them up all over the property saying “PROPERTY IS NOT FOR SALE” “LAWSUIT PENDING” “(SELLER NAME)IS NOT THE OWNER”. I was pretty supprized when I saw all that. I got some pictures…I’ll never forget this one.
Owner states that he owns a property which he lease optioned and had to evict for non performance.
Tenant/buyer are suing for “deliver property per contract”.
Owner want to sell it and is advertising it FSBO.
My initial take on this to walk. I figure if the tenants got a lawyer they probably have a good case. And even if they don’t they will be tying this place up in the courts for months/years.
Anyone have experience with properties in lawsuits?
a buddy of mine is dealing with this exact scenario right now. I advised him to condition the purchase on the receipt from the tenant of an executed waiver (or assignment). To do otherwise would allow the seller to make HIS problem YOUR problem.
and if the tenant refuses to sign, you should walk away. This guy needs to get his title situation cleared. He can do so by filing a quiet title action.