I just want to say first and foremost that I do understand the question. I am concerned that it is being asked here ... and more concerned that the lender you are working with is not answering your concerns about the buyer and the tenant situation.  Sincerely, all the opinions here are just that. What counts is what the lender you are working with advises you.

Typically the new owner needs to honor the tenant's contract (at least in Cali).  Sometimes the tennant can be negotiated with.

What does lease say? No lease, month to month, throw them out ASAP. Buyer takes preference. Lender will not let a rent back for longer than 60 days.

Your lender will probably require the buyer to occupy the property within 60 days.

Good question, I am sure that Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi , Joe Petrowsky , John Meussner , and a few others will have good answers.

     What does the Lease say?  Is the Tenant aware of the sale, and prepared to move out?   I am not a Lender, but I believe that an FHA Loan may allow a holdover tenant up to 60 days. 

    Get advice from the Lender who is doing the loan!

I wouldn't advise this to be a good idea to my FHA buyers, too risky.  The lender needs to know what's going on and won't like it eitherprobably.  Close later, wait for the tenants to move out or find another property or find another loan program, but talk to the buyers lender most importantly. -Kasey

Best they are out on day 59, but doubtful the FHA police will show up day 60. I defer to my exopert though, Jason E. Gordon 

Bob Crane gave you an excellent suggestion.  A

In my years of reale state both lenders and insurers want a 30 day window. Let's see if this has changed. Also, if the tenant is legally entitled to stay 60 days this may be a problem.

Bob Crane nailed this one!

If i was a buyer broker, i would not recommend my buyer purchase a home with FHA and have a tenant occupying the property for even 1 day. The allows 60, but what if the tenant stays 61? what if the tenant does damage? It could be an expensive fix for the buyer if there is damage. For me it does not matter what the lease says as my buyer would not close until the tenant is out. If the buyer really wants the home, delay closing to tenant is out

Subject property lease lasts  60 days after the close of escrow. Lender won't ask for the lease, unless it is disclosed in contracts or mentioned. Buyer signs an agreement that they intend to OWNER OCCUPY in 30 days, fire/hazard must be written as owner occupied. FHA is strict about this and it would be fraud to lie, and penalty is horrendous. Fire insurance may not cover tenant caused damage. Buyer or seller must offer tenant cash to move. If I was buyer I would not close with tenant in the subject property, as they may need to go to court to get them out (could be until the cows come home). Lender could call the note. Any lender should tell it to you straight. Tenant moves out a couple days before close or walk on, find another property.  That you posted this public it is vital that you make the parties follow the law. It may be difficult to get tenant out in parallel time frame with your buyer's rate lock. Get an addendum stating the seller is reponsible to get them out by x date or the deal is off and contingency does not apply

Karen Jones Lewis, MBA, Realtor What does the lease say should the seller decide to sell? Tenants usually can legally stay the term of their lease. A buyout is a potential possibility.

Check with the buyer's lender as there may be a requirement (I had that with another loan) but you also can't just evict the tenant if there is a lease in place.

For some expert advice contact Joe Petrowsky, Gene Mundt, Larry Bettag or George Souto!

Well, I am not a lawyer, but FHA rules state that the buyer must occupy the home within 60 days of closing and for a minimum of 1 year.  So my interpretation would mean that the current tenant could legally stay for 59 days.  But as always check with the lender because if the buyer is signing a loan application stating that it is a primary residence the lender may not allow renters for any period of time.  You don't want the sale to fall apart the last minute because lender won't fund loan.

I would disclose and that seems to be ok to me as long as buyer intends to live there

Not being a lender, I know with a financed deal, the buyer must take occupancy within 60 days.

In CA it is 60 days notice, but situations happen when tenants did not find a place and refuse to move out before COE;  it can become a huge issue, especially for FHA loans. 

IMO it's all in the lease and varies from state to state

Most loan require a borrower/purchaser to take possession and live in a home within 60 days of closing.

We do not have FHA in our great nation.

Karen Jones Lewis, MBA, Realtor - as long as there is a contract, why not?

Though I'd leave it to the attorneys and lender.

Sorry, I can't help as I am in NC and state laws with regards to leasing are all different, Karen. I would definitely confirm with your lender as well as reaching out with the question to other trusted lenders in your area.

Lenders have occupancy requiements that must be met on owner occupied FHA loans. Check with the lender you are using. 60 days may be within the window of acceptability of when the new owner must occupy.

Do not know.

I dont see why not however what if they dont move out?