Rent Roll as Recourse

Rent Roll as Recourse

Rental Property Investor · Seattle, WA · Member since 2016 · 524 posts · 148 votes

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.

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  • Ivan BarrattBusiness Member
    Investor · Indianapolis, IN · Member since 2015 · 764 posts · 953 votes
    8y

    @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.

  • Rental Property Investor · Seattle, WA · Member since 2016 · 524 posts · 148 votes
    8y

    @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!

  • Ivan BarrattBusiness Member
    Investor · Indianapolis, IN · Member since 2015 · 764 posts · 953 votes
    8y

    @Gulliver R. I gave you the subject matter. Your job is to do the work to understand it. :)

    Happy Hunting and Learning!!

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