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