We closed on a three family on the 4th and everything we received from the seller had stated he collected last month's rent from each unit, so we show up to the closing with the understanding that $2,600 would be deducted from the purchase price. Once the seller views the HUD he declares that he never collected last months rent and he only had the tenants pay first months rent and move in.

My closing attorney challenges him saying the info we received from his realtor had stated each unit paid last months rent upon moving in. This disclosure was not signed by the seller and the listing agent took responsibility for the “error”. RED FLAG went up and after talking with our attorney we decided to withhold $2,600 from the seller until we can get to the bottom of the problem.

Rewind two week I had requested the tenants to complete estoppel agreements, but the listing agent said none of the tenants spoke English and the seller lives out of state, so this would be impossible. I translated the document for him and he then said they all have trust issues. I see a trend. Since the closing I have had conversations with all three unit, in English, and they all completed the original estoppel agreement and stated they paid a double payment upon moving in, and the amount thy said to have paid matched the numbers on the “mistake” on the document provided by the listing agent. My attorney is working on the issue and I should hear back today about what course of action we will take moving froward.

I know tenants can lie to get the upper hand, but all three units said the something and the numbers all match. The previous owners TAW agreement with the units are awful (missing dates, unreadable etc) and they have all paid cash in the past so the paper trail is limited to hand written receipts over the past 3-5 years.

What does everyone else think? Solving this problem doesn’t not put more money in my pocket but it can take money out of my pocket.

Oh and the one unit was paying $50 dollars less than was disclosed (verified with receipts from previous owner to tenant) so honesty is not prevalent with the seller agent combo.