Assigning Lease to New Owner

5 posts by 4 users

No avatar medium M Ness
Fort Lauderdale, FL
20 Posts
0 Votes
1 Award

M Ness

from Fort Lauderdale, Florida

Feb 20 '13, 11:57 AM


Has anyone sold (or bought, for that matter) a property with a tenant in place? If so, what is the proper way to assign the lease to the new owner/landlord, assuming the lease is freely assignable? Is there a good sample assignment agreement floating out there that someone wouldn't mind sharing?

Thanks.



Medium 1399664892 avatar knpstr Kurt K.
Investor from Southern, MI
177 Posts
50 Votes
3 Awards

Kurt K.

Investor from Southern, Michigan

Feb 20 '13, 11:59 AM
1 vote


The old landlord gives you the original lease(s). Nothing changes for the Tenants. No extra paperwork is needed, it is assumed that the new owner inherits existing tenants/leases.



No avatar medium Wayne Brooks
Real Estate Professional from West Palm Beach, FL
9232 Posts
3256 Votes
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Wayne Brooks

Real Estate Professional from West Palm Beach, Florida

Feb 20 '13, 12:05 PM


Not absolutely necessary, but a simple disclosure that there is a lease in place with rate, term and tenant name, signed by buyer.



Medium 1431956984 avatar lynnm Lynn M.
Investor from Chesapeake, VA
1396 Posts
467 Votes
5 Awards

Lynn M.

Investor from Chesapeake, Virginia

Feb 20 '13, 12:15 PM


I would think the transfer is laid out in your sales contract with the seller. Make certain it specifies you receiving the security deposit as I believe you will owe the tenant his deposit whether or not you received the funds from the seller. While the tenant and you are still obligated under the current lease, I actually asked mine before we bought it if she would sign a new one-year lease with us after we closed so I'd know she would stay a full year and that she had my info on where I wanted the rent sent, no confusion.



Kurt K.

Investor from Southern, Michigan

Feb 20 '13, 01:09 PM


I know in MI law the seller is either required to transfer security deposits to the buyer or return them to the tenants and the new owner is responsible for collecting deposits. So the buyer can't get stuck without receiving, while being liable, for deposits. The law may vary state to state.



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