Underwriter wants proof of transfer of lease

Underwriter wants proof of transfer of lease

San Francisco, CA · Member since 2017 · 10 posts · 11 votes

I bought a Bay Area rent controlled fourplex earlier this year, and while working on a loan for a new purchase, the underwriter is refusing to consider the income for the fourplex without documentation of the transfer of the leases.  I don't think I have such documentation -- under rent control a new owner must assume the existing leases unless eviction criteria are met.  

I've provided documentation of annual rent increases and history of rent payments, apparently not to the underwriter's satisfaction.  Anyone faced this or have advice on what documentation I could try?

Thanks!

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  • Escrow Officer · Temecula, Ca. · Member since 2016 · 418 posts · 152 votes
    7y

    It is not hard to do an assignment of lease for each tenant unless the tenant is adverse to cooperating? 

  • San Francisco, CA · Member since 2017 · 10 posts · 11 votes
    7y

    Upon transfer, we couldn't get all the estoppels signed, so I expect we'd be hard pressed to get new leases signed in a timely manner.  It's a good suggestion though, and something I should have at least tried as a matter of course when I bought the building.

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