Good evening. We are buying a duplex, and we are closing tomorrow. I have had several questions for the seller. She has not been cooperative. For instance, I do not know if one or both of the tenants have moved out. I will be paying the water bill and I do not know the 12-month history for water and sewer bills. The water company will not share it with me, and she has not replied to my requests. The city sewer billing history is being mailed to me by the city, but has not arrived yet. I do not know if the tenant(s) staying have given her deposits, and if she will forward them to us. This is our second property. The first one we purchased empty, and in hindsight, we should have bought this one empty as well. I feel like I am making a lot of rookie mistakes... but how do I get the answers I need? Should these have been asked before making an offer? An addendum to the offer to purchase? Answered before setting a closing date? Now my biggest question is, what do I need to ask from her at closing tomorrow, and what leverage do I have to get answers?
First of all congrats. Those questions should have been addressed during your due diligence period. Prepare a FOIA request for utility information. They are required to respond by email or mail your choice. Probably to late now. You are entitled to prorated rent portions for the current month. You should have received a copy of the leases. Not sure how proration of rents are calculated without the leases. You need to review the leases to determine what the terms are and how much. Do you have an attorney representing you? Do you have a walk through tomorrow prior to closing. That is a must. I would not proceed with the closing without the requested documents and time to review. Not sure if you are stuck at this time.
Thank you! So I should have a FOIA form for the seller to sign, so I can present it to the utilities and get the history I want? I will request pro-rated rents at the 4pm close tomorrow. I do not think there are written leases - she just told me they were 'month-to-month'. There might not even be deposits. (!!) I do have a lawyer, he will be at the closing with us. The walk-through is tomorrow at 1pm - I will bring a camera with a date-stamp
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing