Re: Change of Ownership Drama - Landlord Forum thread 360915

Re: Change of Ownership Drama by lpadave on November 1, 2020 @06:49

Just also thought of this...

Title insurance company may handle any claims. I don't know

........keep us all posted,..for our own continuing education !

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Re: Change of Ownership Drama by Thomas on November 2, 2020 @13:37	[ Reply ]

Closing was completed, and all monies and lease transferred, on October 30th. The tenant signed a notification to vacate, dated October 31st (it arrived today-Nov2- via certified mail). Common sense tells me I would obviously need to transfer next months rent (deposited to me 1 day after I no longer owned it) and the vacate notice to the new owner, BUT....I know rental laws sometimes go out of their way to protect the tenants, and don't always abide by "common sense". I see where this is going....when they leave he's going to expect ME to reimburse his deposit (even though I no longer own it). His rationale is that he never entered into any written agreement with the new owner, therefore shouldn't have to fall under any provisions within the lease regarding his deposit, as handled by the new owner. It's all very crazy. I'm just hoping it doesn't get to the point where I need to hire a lawyer--I was a small-time landlord (that was my only rental property...don't have a lawyer on retainer or anything). Thanks, I'll keep you posted. I'm planning on forwarding the notice letter/rent$ to the new owner tomorrow (certified). Big question I guess--If the property is occupied at time of ownership transfer, the lease transfers to the new owner (even though MY name is on the lease), correct? Can the tenant really just refuse to sign a new agreement with the new owner and come back to me for security deposits when he moves out, even though he didn't give a 30 day notice to vacate until after I no longer owned it? Bewildered!

Re: Change of Ownership Drama by lpadave on November 3, 2020 @03:16	[ Reply ]

As long as your closing documents are clear in detailing that the tenants deposit was in fact transferred from you to buyer,... I think you're fine. It may take a letter or two from you to the tenant,...but the tenant's screaming at you isn't going to go anywhere. Most form leases contain specific language about sale of property. Re read yours carefully, AND look up your laws. I think your real exposure might be with the buyer if he was expecting to be buying a unit with a good performing market value tenant in place,....and staying.

Re: Change of Ownership Drama by lpadave on November 3, 2020 @03:24	[ Reply ]

Also. Did you take move in. Or last inspection photos of unit for conditions, AND forward copies to the new buyer .? There may be a conversation between departing tenant and new owner over exit conditions,....with tenant claiming to new owner that the conditions existed when tenant moved in.

Re: Change of Ownership Drama