Finding tenants prior to closing - Posted by Mike

Posted by rick Wheat on February 26, 2001 at 06:37:31:

about signing leases, doing repairs, or especially moving someone into a property before you actually close on the purchase of it. Although you DO have an interest in the property via your P & S Agreement to buy it, that does not give you the right to move someone into it, (unless the seller gives you WRITTEN permission to).

You may certainly advertise it, and even take applications on it, but I wouldn’t bind myself to a tenant unless you have legal right to do so.

As far as repairs go, there is a concern here as well. Even if you agree that in the event the property does not close as expected the repairs are given to the benefit of the seller, what happens if one of your repairmen get hurt on the property? Major liability issue here.

Best to get estimates and applications, but don’t bind yourself until you actually OWN the property!


Rick Wheat

p.s. - if it is a Land Contract or Wrap Mortgage, without a “formal” closing, I’d suggest you still actually get all the documents signed before you take “action”.

Finding tenants prior to closing - Posted by Mike

Posted by Mike on February 25, 2001 at 20:30:19:

What is required to show property to prospective tenants, begin repairs, or even move new tenants in prior to closing when acquiring rental property? Is it the same procedure whether the deal is a wrap-around, land contract, or lease option, direct purchase etc.?

Thanks very much.
Mike (still on the sideline)