Can Buyers Ask for the Lease?

Question

I'm putting in an offer on a vacation rental that has a long-term tenant currently. I asked my agent if I can please have a copy of the current lease agreement for the tenant, and she said that the seller wouldn't provide that before due diligence. This struck me as odd, but I am not familiar with Georgia rules. Shouldn't I be able to request a copy of the lease agreement BEFORE I make an offer?

Account Closed · Answer

go back through your OTP contract. If they signed the contract, and if the contract specifies they must provide any copy of lease, rent rolls, etc., then they have a contractual obligation to fulfill. Now, their failure to do so may only lead to contract termination, or you may be entitled to damages, depending on the contract. But if you just point out respectfully that they signed the contract and need to fulfill their obligation, that may solve it.

A 2nd option is to ask them to provide the lease terms, renal amount, and any rent concessions. That is your most important information, and may sidestep their concern.

Mitch Messer · Answer

Hey Stan, I got your DM but I can't respond here. Please call or email me (contact details are on my profile page) and I'll gladly get you to my mortgage guy!

Wayne Brooks · Answer

All you need to know before an offer is the monthly rent.

Stan Butler · Answer

As long as you can get it during the due diligence phase I don't see a problem.  You are correct for wanting to see one since you will have to honor it after closing.  I would just make sure include in your offer all documentation that you expect to review, and be provided by seller, during the DD phase.

Stan Sugarman · Answer

It is a seller's market so some sellers are being difficult

Chris V. · Answer

Yep makes sense, thank you Stan.

Chris V. · Answer

Thanks Simon, an SSN on a lease agreement is a new one to me, never seen that, but I would expect NPPI/PII to be redacted from a document prior to sending.

I’ve had sellers provide leases to me for duplexes we purchased, prior to purchase (I can’t remember if it was during due diligence or before the offer was made, now that I think of it, it might have been due diligence!). But this was in SC. I’m not clear on the precedent in GA. Hoping someone can speak to GA. Thanks again!

Stan Sugarman · Answer

Agreed but if the seller refuses your only recourse is to not make an offer.

Chris V. · Answer

Thanks Stan. Respectfully, There are many things we are allowed to ask for which aren’t legal requirements for sellers to provide, ie rent roll, expenses.

Stan Sugarman · Answer

There is no legal requirement to provide a lease prior to contract execution.