Purchasing an investment property and will be closing in 45 days. Seller wants to be able to receive all past due rents after closing. Shouldn't they collect past due prior to closing? And if they don't then oh well. I don't want to be responsible to pay the Seller monies for past due rents after the building closes. Its legally my building at that point. Thoughts?
Rent owed prior to closing is the property of the Seller. Buyer receives all rents owed after closing.
However, once the property sells, the Seller is out of the picture. Anything uncollected and owed at that point would be between the Seller and the Tenants and has nothing to do with the Buyer.
Question: why would you buy a property and leave tenants in there that are delinquent on rent? Your purchase should be subject to the Seller removing the Tenants or getting them caught up on rent so you're not starting in the hole.
As Nathan said that is between the seller and the tenant-nothing to do with you. You also need to make sure you get the deposit from the seller as you will be expected to return it to the tenant once they move out.
I believe...and you should check with an accountant or have the seller check with an accountant...but I think that rents that have not been paid can be taken as a loss when the seller files his taxes on the sale of the property.
Additionally, read your contract, it should hint towards the answer and you can ask an attorney to assist you in determining what is required of you per the laws in your state.