Buying a home with a tenant in Virginia is possible, but what you get depends on your contract and the lease. Settle both before you ratify.
Check what your contract says about tenants
Under the Virginia REALTORS contract, the seller agrees to transfer the property free of tenancies at settlement (Paragraph 14), according to the Virginia REALTORS Legal Hotline. If a tenant is still there and the contract calls for a vacant home, the seller may be in breach. If you want the tenant to stay, the contract should say so.
If you want to keep the tenant
Ask for these before you commit:
- The signed lease and any addenda.
- The rent amount and payment history.
- The security deposit amount and who holds it.
- Written confirmation of the transfer of the lease and deposit at settlement.
If you want to live there
Do not count on the tenant leaving. The lease controls. Put a firm vacant-possession date in the contract and have the seller resolve it before closing.
Buying at a foreclosure sale
Virginia treats a foreclosure buyer differently. The buyer takes the property subject to the tenant’s rights. If you will live there as your primary residence, you may end the rental by giving written notice that the tenant must leave at least 90 days later. For any other purpose, the tenant keeps the home for the rest of the lease term (Va. Code § 55.1-1237).
Before you sign
- Tell your lender the home is rented. It can affect your loan.
- Have your agent schedule inspections around the tenant’s rights and proper notice.
- Confirm the plan in writing.
Part of our guide to owning a home in Virginia.
Talk to Glenn and Gift before you buy
Questions about buying a rented home? Call 703-707-0334 or send us your question.
General information for Northern Virginia buyers, not legal or tax advice. Ask your settlement attorney, title company or CPA about your situation.
