Rent Roll as Recourse

3 Replies

This might result in an "it depends" or "consult an attorney", but here we go...

Is this statement true (and in particular in the state of Indiana if anybody knows from experience)?

The certified (and notarized) rent roll is often used in income-producing real estate rentals (i.e., apartments, mobile home parks, etc.). If a buyer, in reliance on the rent roll, closes escrow and then discovers the rent roll was incorrect, buyer’s recourse is to sue seller for breach of contract.

@Gulliver R. probably true but you'll have to spend $$ and time to get a settlement. A better approach is to audit the leases and financials during your DD and have a clause for vacant units under a threshold and a credit for any vacant units that aren't rent ready.

@Ivan Barratt can you please explain and unpack what you mean when you say 

“audit the leases and financials during your DD and have a clause for vacant units under a threshold and a credit for any vacant units that aren't rent ready.”?

I appreciate your input!