Re: 1st Deal - Posted by Melissa
Posted by Melissa on March 06, 2001 at 17:25:07:
A clause that allows you to advertise and show the property before the closing is OK. You can clean the place up and promise new appliances or paint, but don’t start any work prior to closing. If you find a good Tenant, schedule the move in a couple weeks after the closing in the event of a delay (this will also give you time to do work), but have a clause that allows you to give them credit if there is a delay in posession and allows them a refund in the event you cannot give them possesion in the worst case scenario.
e.g. 4. Possession: If there is a delay in delivery of possession by Lessor, rent shall be abated on a daily basis until possession is granted. If possession is not granted within (10) ten days after the beginning day of the initial term, then Tenant may void this Lease and have full refund of any deposit. Lessor shall not be liable for damages for delay in possession. It is understood that decorating, if any, to be performed by Lessor shall not be a condition precedent to possession or rent.
You never know what sorts of issues may come up to prevent a closing, but in my experience, 90% close without an issue, but the other 10% could really be bad news if you started work and have already created expenses for yourself. Some deals never close, then what would you do.
As far as the utilities, if the place is vacant, the sales contract should require the seller to keep utilities on until the sale closes, if you’re worried about it. After the closing, then transfer the utilities.