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Johncey Mathew
  • Rental Property Investor
  • Lancaster, PA
2
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4
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Prorated rent for a tenant being evicted on a multiunit closing

Johncey Mathew
  • Rental Property Investor
  • Lancaster, PA
Posted

Closing on a multi-unit property and an issue came up with pro-rated rent credits for the buyer. One of the tenants is being evicted. Would you normally have a credit to the buyer on the HUD-1 for this unit's rent even though the seller didn't collect rent for the respective month? Obviously the seller doesn't want to credit the buyer for rent they didn't collect and they have incurred courts costs in dealing with this tenant already. Also this happens to be a new tenant that the owner placed while the property was under agreement. Whenever I've purchased propertiesbefore whether or not the buyer actually collected I believe is immaterial. Curious how others may have handled.

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