Wouldn’t happen in AZ; they’re still doing evictions unless the tenant can prove a hardship directly related to covid. If that seller got cash for the house he can hardly claim hardship, IMO. But California is a very tenant-friendly nanny state, so it doesn’t really surprise me either.
So I think buyers have to balance the potential risk and how they think they’d make out in court. Probably not a bad idea to spend a couple hundred bucks to talk to an attorney before agreeing to anything.
If the buyers had required a significant amount of their proceeds to remain in escrow, with a daily fee payable to the buyer, the seller would have moved out long ago. Not to bash these folks too hard because this started before eviction moratoriums were a thing. But still you want some sort of penalty, and money in the hands of a third party, before you get involved in a rent back.
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