Inheriting leases at acquisition

5 Replies

When ya’ll take on tenants currently on a year long contract with previous owner, how do you prefer to bind the contract you’ve inherited to include you as the new lessor? 1) Just scratch out old name/address and wrote your name and have them initial/sign? 2) Create new addendum? 3) or do I need a new lease altogether? I’m in Florida, and I guess I’m not even sure if that contract is still valid, or if it fully transfers to me automatically, etc. lookin for some wisdom and advice! Thanks!

Agreed . You just keep the leases in a safe place and follow them . You are the new owner and it’s like having your name on those leases . Nothing to sign or swap . There is a thing called an estoppel agreement which is just a document the tenants sign stating / clarifying what they are required to do and what LL is required to do but it doesn’t supersede the lease agreement . Atleast this is how I understand it in Pennsylvania where I own property

I'm closing on a 4 unit office building this week, and the realtor did an Estoppel Letter for the existing leases, which assigned the tenant's lease to me as the new owner.

Usually, the leases transfer with the COE. BUT be sure there isn't anything terminating the leases on the sale of the property in the lease/contract. Also, what does the contract say about the transfer of security deposits? 

As always, seek professional advice.