Uncategorized September 26, 2011

Sold sign goes up, tenants lease comes down??

When a rental  property is sold  the lease remains in force.  If a sale occurs when there is a tenant in place the following need to be transferred to the buyer:

¨      Lease

¨      Move in inspection

¨      Tenant ledger

¨      Tenant deposit and any pre-paid rent

¨      Tenant contact information

¨      Keys

If closing is mid-month rent will need to be pro-rated between seller and buyer at closing.  The Purchase and Sale Agreement should address the transfer of these funds and documents.