Posted by Jimmy on May 21, 2006 at 09:10:01:
Dealmaker is right. You inherit the tenant. Here are some thoughts:
You need to get a copy of the lease when you get the contract. Write this into your contract.
You want a to add a special provision to contract that (a) you get a credit in escrow for the rent proration during the month of closing, (b) you get a credit in escrow for the security deposit. The special provision should state that the seller has rent collection responsibility for the month in which the deal closes. You get an allocation of gross rent. He has to collect it.
Just to be careful, require the seller to deliver you a “lease acknowledgment” signed by the tenant. Its a very simple 1-page form. You want the tenant to sign a form stating (a) the lease term, (b) the lease rent, © the amount of the deposit. this protects you later if the tenants claims he made a biggr depoait than the seller represented.
as for Scetion 8. its pretty easy. after you close, call the agency. they will want to see a copy of the closing statement to prove you bought the property. they will want you to provide new payment instructions and a new W-9.