I've got an estoppel letter I use for purchasing tenant-inhabited properties. The content was suggested by my lawyer and is definitely suited for scenarios when a written lease is governing. I'm tightenting up my offer on an occupied property where (according to seller) the lease is verbal only. What items are recommended to record on the estoppel letter when the lease is verbal? The dumb answer would be to include everything included when a written lease it in play, but I'm open to hear from others who have run into this situation and advice they can give.
Re: Tenants (according to seller) are deficient on rent. I want to rehab and re-rent property, and if seller is honest, have reason to evict with late payment. My purchase offer includes a seller-held mortgage maturing in one year, so I want to make sure my estoppel letter ensures that I can either terminate or evict existing tenants in a timely fashion.
I'm curious about this too as I'm looking to purchase a tenant occupied property.
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Wow...an Estoppel on a "verbal" lease....
Now I'm curious!
The hedge funds I work with have an Estoppel, but to be honest...if the lease is verbal.."legalese for nothing will uphold in court" ..
I would get a copy of the last written lease so you have that....I assume there is one...
Then use your Estoppel and have them sign it and let them know that you are purchasing the property and there is no lease in place but you want to work with them to allow them time to find another home, and let them have 45 days to find another property.
Try to go the nice route first.
I would have the seller deal with the tenant before closing on the deal. Especially since the seller is going to carry a mortgage. Tell the seller he is responsible for getting rid of the tenant, then you will close. If you don't, you could end up with a lengthy, expensive mess to get rid of the tenant.
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