Signing lease before closing
How common is this situation? 

I know of a tenant (2 physicians) in search of a property. They do not want to own. 

I am interested in buying the property and leasing it to them. Is there anyway to minimize the risk of them backing out of leasing from me after closing after the purchase? 

Numbers wise 
Purchase price 750k 
Lease at 6k/month NNN
5 yr with 5yr options 
3% escalations 

No Ti, perhaps 60 days free rent
[{"id": "fmj3jrx", "text": "Have the lease signed before due diligence ends. Put a termination contingency that either side can back out of the lease if you haven\u2019t closed by 31 days past your expected close date. \n\nBest answer though is talk to your attorney and have them draft it\n\nEdit: talk not y\u2019all", "replies": [{"id": "fmky4e7", "text": "termination option is good answer, but if you look at the responsibilities of each party, tenant doesn't have to do as much, so they shouldn't have same rights as developer.   \n\nthis is most commonly handled with developer having responsibility to deliver building for tenant by fixed date.  if developer can not deliver by this date, they can delay delivery by giving notice.  on flipside, developer has a whole list of issues to get through to be able to perform-title, survey, environmental, appraisal, financing etc etc.  if any of these go wrong developer should have right to notify tenant that it is terminating lease.\n\nif you structure other than the above, tenant has substantial opportunity to waste developer's time and money if they change their mind for whatever reason.  i prefer above, but as fallback you could say tenant agrees to reimburse developer for out of pocket costs if tenant terminates.", "replies": [{"id": "fmlfjz3", "text": "Yea I 100% agree if you can work a penalty in. I\u2019ve done it a couple times and we didn\u2019t even think to treat it that way. \n\nThe only reason I\u2019d say this might be different is that the property is being purchased instead of developed. The way I\u2019ve handled it in the past, the purchaser is strictly the liquidity injection. The tenant is responsible for completing whatever due diligence they want during the due diligence period and we get a lease signed before that expires. Then we move to close and the only possible thing that could hold it up is cloud on the title. \n\nI do like your penalty idea, that\u2019s something I\u2019ll float the next time we do one of these", "replies": [], "depth": 3}], "depth": 2}, {"id": "fmra56t", "text": "What do you have against \"y'all\" ?   Lol", "replies": [{"id": "fms5i2u", "text": "Lol nothing, just I said y\u2019all to your attorney instead of talk to your attorney. I y\u2019all my attorney all the time don\u2019t worry", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fmj8j1e", "text": "Seems like you could also handle this through a title agent at closing such that the lease documents are executed, but held in escrow and close \u201csimultaneously.\u201d", "replies": [], "depth": 1}, {"id": "fmjmtrq", "text": "If it does go sideways... Not exactly sure you can expect to have a lease hold up in court on a property you had no legal right to execute the agreement at the time it was signed (assuming you did this prior to closing on the property and they don\u2019t move in).", "replies": [{"id": "fmkyeax", "text": "this is not accurate.  if handled correctly parties could certainly agree to obligate themselves even if developer has not yet acquired property.  think of fast food or drug stores - do you think those landlords buy those parcels at absolute top land prices and just hope the tenant doesn't back out?  no- lease is usually signed prior to land purchase.", "replies": [], "depth": 2}], "depth": 1}, {"id": "fmk49pb", "text": "Ask a lawyer if this is doable, but I'd try to make the lease contingent upon you closing on the property in question.", "replies": [], "depth": 1}]