Purchasing House with Tenant in it questions? - Posted by Tom

Posted by Jimmy on May 21, 2006 at 09:10:01:

Dealmaker is right. You inherit the tenant. Here are some thoughts:

  1. You need to get a copy of the lease when you get the contract. Write this into your contract.

  2. 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.

Purchasing House with Tenant in it questions? - Posted by Tom

Posted by Tom on May 20, 2006 at 19:20:10:

Hello,

I am about to hopefully purchase a house. This house currently has a Section 8 tenant living in the house. Its in Texas if that matters any.

I am purchasing this house and I have told the seller don’t worry about the tenant it will be our problem when we purchase the house not yours. The seller is so fed up with the tenant and wants out of the house.

I am trying to figure out if I need to add anything special into the contract. What steps do I need to take with section 8? What do I need to get my hands on? Do I need to get my hands on the current lease paperwork? Or if there isn’t a current lease do I need to get the old
lease paperwork? What do I need to do about section 8? Should I contact them and get information from section 8 regarding the lease.

Any info regarding any of this would be much appreciated.

Re: Purchasing House with Tenant in it questions? - Posted by dealmaker

Posted by dealmaker on May 20, 2006 at 23:36:33:

I don’t know anything about section 8 tenants, just about TENANTS and LEASES. The lease runs with the PROPERTY, so once you buy, the problem is YOURS. Demand a copy of the lease and a FULL ACCOUNTING of all funds before signing any documents.

I guess contact HUD regarding how to dump the current section 8 tenants.

dealmaker