Tenant occupied property in WA state: agent won't share lease
Member since 2023 · 11 posts · 6 votes
Newbie here: I want to place an offer on a tenant occupied duplex to owner occupy. In order to place an offer I requested copy of the leases and the 90 day notice to sell. The sellers agent refused and said only after an offer is accepted by the seller. Is that normal? I wanted to see when the 90 days was up so I could move in to one unit and remodel the other.
Hey Annmarie, it's true that sellers sometimes withhold lease information to protect tenant privacy, I do find it a bit inconvenient not having full visibility before making an offer however, the seller might be concerned about protecting the tenants' privacy. In cases like these, you can structure your offer with contingencies that allow you to back out if the leases or the 90-day notice don't meet your expectations after review.
I'd recommend asking an attorney, but here in ohio I usually say something along the lines of - Contingent on satisfactory review of lease and tenant ledger
@Annmarie Hill, yes in my area it is normal.
What I would expect to know from them BEFORE making an offer is if the unit is occupied, what the rental rate is and whether they are on a lease or month to month.
Reviewing the lease itself falls under your "due diligence" as part of the sales contract.
So, the sales contract should specify any inspections etc you want to do, including reviewing a copy of the lease and also getting estoppel forms signed so that you know what the current rental situation is in detail and that the tenant is attesting to that so there are no disputes later.
If you plan to move in, you should probably require them to make the unit vacant before closing because even if the tenant's lease is ending doesn't mean you won't have to then evict them which could take more months.
Hey Annmarie, it's true that sellers sometimes withhold lease information to protect tenant privacy, I do find it a bit inconvenient not having full visibility before making an offer however, the seller might be concerned about protecting the tenants' privacy. In cases like these, you can structure your offer with contingencies that allow you to back out if the leases or the 90-day notice don't meet your expectations after review.
Yes, it is normal not to let you see the leases until you're under contract, but the agent should be able to let you know verbally when the leases are up or at least if one unit can be vacant by closing.
Hey Annmarie, it's true that sellers sometimes withhold lease information to protect tenant privacy, I do find it a bit inconvenient not having full visibility before making an offer however, the seller might be concerned about protecting the tenants' privacy. In cases like these, you can structure your offer with contingencies that allow you to back out if the leases or the 90-day notice don't meet your expectations after review.
Hey Annmarie, it's true that sellers sometimes withhold lease information to protect tenant privacy, I do find it a bit inconvenient not having full visibility before making an offer however, the seller might be concerned about protecting the tenants' privacy. In cases like these, you can structure your offer with contingencies that allow you to back out if the leases or the 90-day notice don't meet your expectations after review.
I'd recommend asking an attorney, but here in ohio I usually say something along the lines of - Contingent on satisfactory review of lease and tenant ledger
Hey Annmarie, it's true that sellers sometimes withhold lease information to protect tenant privacy, I do find it a bit inconvenient not having full visibility before making an offer however, the seller might be concerned about protecting the tenants' privacy. In cases like these, you can structure your offer with contingencies that allow you to back out if the leases or the 90-day notice don't meet your expectations after review.
I'd recommend asking an attorney, but here in ohio I usually say something along the lines of - Contingent on satisfactory review of lease and tenant ledger
Thank you! I have a consult with an attorney scheduled for early next week. Trying to build a team in a rural area isn't easy. I appreciate your help!
@Annmarie Hill, yes in my area it is normal.
What I would expect to know from them BEFORE making an offer is if the unit is occupied, what the rental rate is and whether they are on a lease or month to month.
Reviewing the lease itself falls under your "due diligence" as part of the sales contract.
So, the sales contract should specify any inspections etc you want to do, including reviewing a copy of the lease and also getting estoppel forms signed so that you know what the current rental situation is in detail and that the tenant is attesting to that so there are no disputes later.
If you plan to move in, you should probably require them to make the unit vacant before closing because even if the tenant's lease is ending doesn't mean you won't have to then evict them which could take more months.
@Annmarie Hill, yes in my area it is normal.
What I would expect to know from them BEFORE making an offer is if the unit is occupied, what the rental rate is and whether they are on a lease or month to month.
Reviewing the lease itself falls under your "due diligence" as part of the sales contract.
So, the sales contract should specify any inspections etc you want to do, including reviewing a copy of the lease and also getting estoppel forms signed so that you know what the current rental situation is in detail and that the tenant is attesting to that so there are no disputes later.
If you plan to move in, you should probably require them to make the unit vacant before closing because even if the tenant's lease is ending doesn't mean you won't have to then evict them which could take more months.