This is a constant problem. Many Tenants now simply stay in place. They want a big payday, something in the range of about $30,000.00 in order to be “bought out”. Now, once they receive that money, they will move!
Absent that money, they will simply stay and wait out the Landlord and Tenant Board application for eviction. They will not move out until forced by a Sheriff enforcing an Eviction Order.
Many clauses will simply provide that the Seller can cancel the deal and that means that the Buyer is out of luck. They have done their deal, lost 9 months and the deal has gone sideways. They really require:
- An extension, and/or
- A reduction in price.
Consider this clause rather than the “null and void” clause which protects the Seller:
“The Buyer acknowledges and agrees that it requires this property for personal use. The Seller agrees to provide vacant possession of the property on closing. Should the existing tenants be served with the appropriate notice and refuse to vacate the property on the closing date, the Seller shall be allowed, at their sole option and discretion, to extend the closing by up to 90 days [the Revised Closing Date]. Should all existing Tenants not have vacated the property by the Revised Closing Date, the Buyer agrees to take possession of the property with those remaining Tenants in place and the purchase price shall be reduced by $X (for example $40,000)”
Naturally, the extension period could be moved over to the Buyer, and the amount of a reduction could be adjusted. Further, the Buyer could still have the right to terminate. Those are other provisions which might be helpful.
Brian Madigan LL.B., Broker