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Is it possible to sell a house with a tenant inside; the new owner will have to respect the existing rental agreement. In this guide by Casavo you will find all the information on how to proceed with the sale of a house with the tenant inside. Let's get straight to the details.
Is it possible to sell a house that's already rented?
The first thing you need to know is that, according to Italian law, you can sell a house with a tenant under any circumstances. In fact, the law says that the tenant's consent is not even required to proceed with the sale.
To reach an agreement with the person taking over the property, you will only need to communicate your intentions to the tenant within the required timeframe and provide information about any right of first refusal, as we will see in more detail later.
If the person buying the property from you is looking for an investment and intends to rent it out anyway, they can also decide to take over the contract and the relationship with the tenant. In this case, in fact, the presence of a person already established could even increase the value of the investment and give you greater bargaining power. The new owner, in fact, would find himself receiving an immediate source of income as soon as the sale is concluded.
The situation is different when the new buyer plans to move into the residence he has just purchased.
Selling a house with a tenant before the rental contract expires
When selling a house with a tenant inside to a person who wishes to move in, you will do well to remember that the tenant has the right to live in the home until the contract is terminated
As the owner, you are required to communicate your desire not to renew the contract at least six months before the expiration date.
If you want to conclude the sale quickly and your agreement still provides for some remaining months, you will have to wait for the natural conclusion of the contract in case the tenant does not intend to leave early. You can also try to reach an agreement for an early and consensual termination of the relationship, but you still can't proceed without the person's consent. The situation is different when selling a house with a delinquent tenant: we'll delve into this topic in one of the following paragraphs.
Also remember that it's your responsibility to inform potential buyers that the property is rented and tell them how many months remain until the end of the contract. This is particularly important information for a purchase with first-home bonus. With a remaining period of more than 18 months, the new owner risks losing the benefits provided by law. The property must be configured as a primary residence, so within a year and a half of the sale the buyer must be resident in his new property.
What to know about the tenant's pre-emption rights
Then there are the tenant's pre-emption rights on the property to consider. Some rulings of the Court of Cassation have established that those who rent can proceed with the purchase as a priority
When the owner expresses his intention to sell close to the expiration and possible renewal of the contract, he can agree with the tenants for a direct sale. The right of pre-emption can only be exercised if the contract has never been renewed.
Let's imagine that you have signed a 4+4 contract and want to try to get rid of the property before the end of the fourth year. It is your responsibility to inform the tenant of your plans with a written communication served by a bailiff, or by registered mail with return receipt. The document will also include the estimated price for the transfer and a request to inform you of their desire to exercise the pre-emption right.
If you receive a written response of waiver, you are free to reach an agreement with whomever you wish. If there is interest, they will respond with another deed or registered letter within 60 days. Furthermore, within 30 days of the notification, they will also be required to pay the purchase price and sign the preliminary contract, unless different conditions are stipulated.
Pre-emption is a different type of agreement from the lease with a future sale agreement. This contract, however, requires a preliminary agreement to be stipulated at the start of the rental agreement for a possible future sale.
Selling a house with a tenant in arrears
The last situation to discuss is that of a tenant in arrears. A tenant who doesn't pay rent is a problem both because he deprives you of a source of income and because he effectively prevents you from finding a new one.
Finding someone willing to take over a rental agreement in the event of arrears is a nearly impossible task. Before trying to put the house up for sale, therefore, make sure you do everything you can to resolve the situation. The initial path to take, obviously, is diplomacy. It's always possible that missed payments are caused by particular and temporary circumstances.
The scenario changes when the other party has no intention of repaying the amount owed, much less of evicting. In this case, the only thing to do is contact a law firm and proceed through legal proceedings. The court will carry out all the necessary investigations to protect your rights and restore full ownership of the property to you within a timeframe that usually takes between 6 and 12 months.
With this guide, you'll know everything you need to know about selling a house with a tenant inside. All that's left to do, at this point, is find potential buyers. To shorten the process, we recommend you take a look at the advantages that Casavo has designed for you. With us, you can receive a quick and free valuation of your property directly online and, if we're interested, we'll make you an official offer to close the sale in 30 days!