Red Flag or No?

Red Flag or No?

Rental Property Investor · Member since 2025 · 28 posts · 14 votes

Hey all – I'm under contract on a property and just discovered something concerning. I'd appreciate the community's perspective and any advice.

My agent was provided leases for a fully occupied duplex. However, after my agent conducted a walkthrough and spoke with the tenants, we learned that the leases provided by the seller were never signed by the tenants. Yet the documents have signatures. I'm still working with my agent to understand what happened, but here's my question:

Is this a deal-killer red flag? Or would you treat it as a serious concern requiring extra diligence—more thorough inspections, permit verification, etc.?

On the bright side, the tenants have indicated they'd be willing to sign legitimate leases with me if I proceed. I'll also consult my PM, but I'm struggling to move past what feels like a fraudulent signature situation. What else would they pass off as legitimate but is fraudulent?

Thanks

-Matthew

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  • Ryan DickersonPro Member
    Real Estate Agent · Seattle, WA · Member since 2024 · 9 posts · 9 votes
    3mo

    If the tenants are willing to sign legitimate leases with you, I'd have them do that prior to closing and any review period ends. I would speak to a real estate lawyer and get their advice on this overall. 

    It wouldn't stop me, but I would move cautiously forward and recheck all the other things the seller previously disclosed/didn't disclose. 

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