I'm buying my first rental property. It's the first house I'm buying. It's a duplex which has two tenants in it already.
The agent says I will get the lease agreements after the seller accepts the offer and if I don't agree with it, there is a contingency. In the contingency it says
"Seller to provide copies of all leases within 3 days of acceptance."
Is that enough for me to back out of the offer if I don't like something in the leases? or it should say something along
"Seller to provide copies of all leases within 3 days of acceptance, and the buyer would have to agree/accept the terms of the leases"
You can use your due diligence period to review the leases and any other documents. I use the attorney approval and inspection contingency periods to evaluate the documents. If I run short of time request additional time. Should not be a problem. I also submit a freedom of information request to the city. You can request the history of permits, water billing, outstanding water bills, code violations, fines and or liens owed, zoning information and plat of survey of the property and it’s all free up to 50 pages In my area. I have them email me the results.
You can use your due diligence period to review the leases and any other documents. I use the attorney approval and inspection contingency periods to evaluate the documents. If I run short of time request additional time. Should not be a problem. I also submit a freedom of information request to the city. You can request the history of permits, water billing, outstanding water bills, code violations, fines and or liens owed, zoning information and plat of survey of the property and it’s all free up to 50 pages In my area. I have them email me the results.
You can use your due diligence period to review the leases and any other documents. I use the attorney approval and inspection contingency periods to evaluate the documents. If I run short of time request additional time. Should not be a problem. I also submit a freedom of information request to the city. You can request the history of permits, water billing, outstanding water bills, code violations, fines and or liens owed, zoning information and plat of survey of the property and it’s all free up to 50 pages In my area. I have them email me the results.
Good Luck.
Would the agent need to put a due diligence period contingency on the offer document?
That language in itself is not sufficient. As it's written, as long as you're provided the documents as required you are not allowed to terminate because the language isn't contingency language.
That language in itself is not sufficient. As it's written, as long as you're provided the documents as required you are not allowed to terminate because the language isn't contingency language.
Thank you, can you please tell me how it should be written?
I'm sorry but I don't provide legal language because there is so much more that should be included here than the language you or they provided. Some of this may be elsewhere in the contract but you want to be sure. What about amendments, exhibits, addenda, etc. to the leases? What about the lease applications? What about an estoppel? Do yourself a favor and don't step over a dollar to save a dime. Hire an attorney to review your contract and make the necessary additions / deletions.
I'm sorry but I don't provide legal language because there is so much more that should be included here than the language you or they provided. Some of this may be elsewhere in the contract but you want to be sure. What about amendments, exhibits, addenda, etc. to the leases? What about the lease applications? What about an estoppel? Do yourself a favor and don't step over a dollar to save a dime. Hire an attorney to review your contract and make the necessary additions / deletions.
All the best.
So I should not put an offer before having the lease agreements? The agent is telling me to put an offer and then I will receive the lease agreements.
You don't need the lease agreement before making an offer, though you should know how much it is renting for and what's included. You DO need time after making the offer to review the lease along with any other documents. Your realtor should be able to help with wordings, but you make it a condition of the offer same as you would financing, inspection, condo docs, etc.
You can use the attorney contingency to exit a contract. You do not need a reason. That is the purpose of having these types of contingencies. Once the time frame expires you are subject to proceed. I suggest you hire an attorney to represent you and for your own protection. The cost of an attorney is very small in relation to the purchase and I think it will give you piece of mind.
Yes, put the offer in now but have language that allows you to exit the contract without penalty should you not be happy with the financials, leases, tenants, etc. Again, perhaps this is included in your contract language already...but it not, hire a professional. Otherwise you're stepping over a dollar to save a dime.
Good recommendation. I think its always advisable to hire an attorney to protect yourself when you are dealing with real estate. Real Estate is the largest purchase you will make. Whether you have done 1 transaction or 100, the cost of protecting yourself is quite small in the big picture.