Posted by William Bronchick on February 18, 2002 at 08:45:12:
The agent is correct; an estate cannot sign a lease, since the estate is a temporary thing. The IRS wants a tax return filed and the whole thing wrapped up in 9 months. Another way to prove it is copies of bank statements of the deceased showing the payments, and/or canceled checks.
As for the LLC/Land trust, this is another issue discussed at length on this board (see archives).
Estate - Assigning Leases to Tenants? - Posted by Paul (NY)
Posted by Paul (NY) on February 16, 2002 at 07:33:07:
Owner: Estate (Owner passed away and there are multiple beneficiaries)
Bldg type: 4 family
Leases: None
My Banker: Requires a sign copy of existing tenant leases to prove current income levels. I work for a bank and they are offering me an employee discount on my home purchase (rate:6.75%). I am planning to use this as my primary residence.
Question:
I was told by the RE agent that it may not be legal for an Estate to have contractual leases with a tenant. Does anyone know if this is true?
Is there any way of getting around the issue of my bank requiring a sign copy of an existing lease before they can grant me my mortgage?
Would it be wise to put this in a LLC and/or Land Trust?