real-estate tenant breach-of-contract
Curious case of real-estate transaction with predatory tenants
<p>This question is looking for some ideas and some underwater rocks that haven't been though of yet.</p>

<h2>The context:</h2>

<p>Jurisdiction: Nova Scotia, Canada</p>

<p>A buyer and a seller has entered into an sale agreement. The seller agreed to deliver the premises vacant on closing date.</p>

<p>Midway to the closing date, the seller is having issues with the tenants who are refusing to leave until well after the closing date.</p>

<ol>
<li>The tenants have the legal right to remain in the property well after the stated closing date.</li>
<li>The new owners will not be occupying the property.</li>
<li>The seller has no written lease.</li>
<li>Although the seller had a handshake agreement with the tenants that they will vacate the property before the closing date, the tenants have turned around requesting a sum of money.</li>
</ol>

<p>The buyers are at the point right before incurring majority of the closing costs. They have just a few days to play with, before they have to continue with the expenses.</p>

<h2>The questions:</h2>

<ol>
<li><p>Can the seller enter a formal agreement with the tenants in which the seller pays a sum of money and in return the tenants vacate the premises before the closing date, and would such agreement hold over the tenants legal right to remain on premises past the closing date?</p></li>
<li><p>What happens if the sale goes though under the assumption that the tenants have left, and in fact the tenants are still occupying the premises?</p></li>
<li><p>What guarantees and proofs can the buyer demand as to the vacant status of the property?</p></li>
<li><p>What other questions should the buyer be asking?</p></li>
</ol>

<blockquote>
  <ol>
  <li>Can the seller enter a formal agreement with the tenants in which the seller pays a sum of money and in return the tenants vacate the premises before the closing date, and would such agreement hold over the tenants legal right to remain on premises past the closing date?</li>
  </ol>
</blockquote>

<p>Maybe. It depends on tenancy law in Nova Scotia.</p>

<p>Notwithstanding, given that the tenants are “difficult”, what are your plans if they take the cash and don’t move out?</p>

<blockquote>
  <ol start="2">
  <li>What happens if the sale goes though under the assumption that the tenants have left, and in fact the tenants are still occupying the premises?</li>
  </ol>
</blockquote>

<p>Why would the buyer settle under an “assumption”? </p>

<p>At the time of settlement either the tenants have left (so settlement happens) or the haven’t (so the vendor is in breach, settlement doesn’t happen and the buyer decides whether to rescind the contract and claim damages or affirm the contract and claim damages). </p>

<blockquote>
  <ol start="3">
  <li>What guarantees and proofs can the buyer demand as to the vacant status of the property?</li>
  </ol>
</blockquote>

<p>They take the keys and walk into it.</p>

<blockquote>
  <ol start="4">
  <li>What other questions should the buyer be asking?</li>
  </ol>
</blockquote>

<p>They should be asking: “Will you be in a position to fulfil your obligations under the contract?”</p>

<p>I assume (perhaps incorrectly) that you read <a href="https://beta.novascotia.ca/sites/default/files/documents/1-1763/residential-tenancies-guides-ending-tenancy-en.pdf" rel="nofollow noreferrer">this</a> especially the "New owner to occupy premises" part and did all of that, having given them <a href="https://beta.novascotia.ca/sites/default/files/documents/4-1315/form-dr2-notice-quit-purchaser-occupy-residential-premises-sale-residential-premises-en.pdf" rel="nofollow noreferrer">Form DR-2</a>. Then presumably you delivered the notice at least 2 months in advance of the planned closing. It is unclear why you think the tenants have the right to remain longer – perhaps you mean that you made an error in giving notice such as not observing the 2 month advance notice requirement.</p>

<p>You could offer them money to move out early (in the form of a contract), but do consider the probability that the tenants will change their mind. <a href="https://www.landlordbydesign.com/can-evict-tenants-take-building/" rel="nofollow noreferrer">Here is a suggestion</a> for an early termination offer in Nova Scotia. An alternative is to negotiate with the buyer for a delay in closing (probably at some cost to you).
The unresolved existence of a tenant could seriously mess up your plan to close, since the landlord obligations survive the transfer of ownership, and the new owners may find themselves with unexpected tenants.  </p>
