Old Owner Signed Lease During Escrow

[Irene Chen]

We just got a new property with tenants in it and found out the day after closing that the old owner signed a new year long lease after the property was under contract and did not let us know. Is that okay? It's not a huge deal as the rents aren't that far below market value but I'm kind of upset that I wasn't notified. They told me that they didn't have a lease for this person and they were just month to month.

[Howard Klahr]

A) now you know why you need to obtain tenant estoppel letters

b) what does your purchase contract state about this issue during the escrow period?

c) What are you looking to achieve from the seller at this point?