Estoppel agreements enough???
Hi BPers!
I'm set to close on a 9-unit building in Chicago in the beginning of next week. Everything is as smooth as can be for an off-market estate sale (judge involved), however there is definitely a point of concern that even my attorney isn't 100% sure about.
In the last 10yrs there was a person/investor that has an installment contract for deed on the property, they stopped paying their payments, and also collected security deposits from the tenants. This person has now waived all claims and rights to the property and it has been recorded against the property, however the tenants (4 out of 9) have pursued this person in a class action lawsuit. It's been denied 3 times by the judge but they're still fighting it. The "owner" at the time claimed that he no longer has the security deposits because the tenants were behind on their rent payments. Besides this lawsuit this person is no longer tied to the property...it's back in the hands of the estate partners.
All this being said, I want to cover myself as much as possible from this. I'm getting a letter certifying that I have not received any security deposits from the estate and that the estate itself never had security deposits to give me. I'm going to have the tenants sign estoppel agreements, however my attorney tells me that the tenants may come after me as new owner of the property.
Any and all advice would be appreciated! Thank you!!!