SELLING A RENTAL PROPERTY?

When a property is sold with a tenant in place, the purchase and sale agreement should address how tenant deposits and pre-paid last month’s rent will be transferred to the buyer.  The buyer will need a copy of the original move in inspection report.  Without one, the tenant cannot be charged for any cleaning required at move out or for any damage done to the property. 

The seller must inform the tenant in writing that the deposit is being transferred to the buyer and the new landlord is responsible for informing the tenants of the Washington State bank and branch where the tenant’s deposits will be held in trust.  The new owner will be responsible for refunding any deposit owed the tenant at move out, per the terms of the lease, even if funds aren’t transferred at closing.

We are here to help you and your clients with all aspects of the rental market. Please contact us for further assistance!

Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.