What Should I Do...
Okay, I have a contract on my house, and it closes tomorrow. I am the seller, have had good tenants all along. The sale is contingent on the lease in place, of course. Today I get a call from one of my tenants, one of the guys left already, and they want to know if the new owner will reduce rent. (!) Then he vaguely threatens to leave himself. I explained that the lease is a legal contract and that each person is responsible, wheterh one or 4 of them leave.
My question. should i contact my realestate agent who is acting as transaction broker and let him know what is going on?
HELP!
Phalseid
You need an attonrney to adequately answer your question. My layman's thinking, is that the lease is in place. You are having trouble with the tenants, and ethically and morally should make the new owners aware of the situation. Is the rent current? Dicey situation, but you can do the right thing. I am sorry that this is a great non answer, but it is the best I can come up with for now.
Good Luck,
Shawn(OH)
thanks,
that is my thinking too, and yes, rents have always been on time and are current.
i just don't want the new investor to come in thinking i screwed him. the tenants are not the reason i am selling the house...(they never should be!)
any other opinions? I am still waiting (with great fear) for my reatlor to call with the final numbers for closing...
phalseid
Be honest. If a tenant is a stip of the contract do NOT try to hide the problem, it can bite you in the rear later. More than likely the sale will still go through.
update: i called my broker and explained the situation. I was prepared to "buy out" the tenant that was leaving (5 months left on contract @325). my agent thought this was good to prepare for.
The deal went thru, I ended up paying for 4 months. I called my now former tenants and explained the situation, they were extatic that they didn't have to pick up the slacker's tab, the buyer was happy, and I sold the house. So win-win-win.
thanks to all who contrbuted.
phalseid
Your purchaser will slip into your shoes once the closing has taken place and could sue the tenants for breach of the lease. As a courtesy you should let them know prior to closing whats going on. Why did the tenants move out?
You guys need to watch more judge shows on TV. Judge Judy and Joe and them other dudes will give a judgement for the current month and that is that. Never sue a residental for a broken lease unless they are movie stars or Donald Trump. Never seen a Judge award for future rents due. Landlord has responsibility to mitigate the damages too and relet the unit.
Good LUCK and HAPPY HOLIDAYS
Hope this helps some
Ted Jr
Just remodel the damn unit, dont be cheep, then reduce rent to $1,895.00 and go fishing or wild water rafting if you prefer so .... Judge Judy TV sesions/courses - rules.
Just keeding... You sad: "The sale is contingent on the lease in place, of course. " Weather they leave or not, is their problem, you are OK in the eyes of th buyer ... after all, why do you even have to know if someone left. As far as you are concern, they live there and you have a contract to show for it. Do not speak with other tenants. if they call, ask them if they know to which address the guy who left should be server with lease violation paperwork... after all, you got his deposit. Right? [ Edited by omega1 on Date 12/22/2003 ]