Closed with tenant in place - haven’t received sec dep transfer

Pittsburgh, Pennsylvania
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Closed with tenant in place - haven’t received sec dep transfer

Kimberly Fisher
Philadelphia, PA · Member since 2018 · 26 posts · 13 votes

My son just closed on his 1st property - a duplex with tenant in one unit and he’s going to house hack the other unit.

We have 3 concerns:

1. The tenant’s security deposit hasn’t been transferred to him yet. In fact, no one (including his own realtor) has even mentioned it.

2. Closing was on 6/27, should prorated rent have been due to him? (This is minor, $85, but still points to the issue.)

3. The seller’s agent verbally informed us that the lease, which expires on 7/31, would (at our request) be renewed as month to month. Son was given a copy of the expiring lease, but has not seen the new one. Shouldn’t he have been given the most recent agreement? And, does that lease remain in effect until son presents a new one?
Note: I recently purchased my 1st SFR with tenant in place and all of these items were taken care of at closing and my realtor made sure they were completed. His realtor has done nothing.

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Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
4y

Was the security deposit mentioned in the agreement?  Same with prorated rent-was it in the sales agreement?  His lawyer should have made sure all of this was done or they shouldn't have closed.

Whatever lease was in place when your son bought it, remains in effect until the expiration date.

The realtor and lawyer should handle these things, but it is also up to your son to make sure things are in place when buying a rental.  If he didn't ask, he's also at fault.

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  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    4y

    Was the security deposit mentioned in the agreement?  Same with prorated rent-was it in the sales agreement?  His lawyer should have made sure all of this was done or they shouldn't have closed.

    Whatever lease was in place when your son bought it, remains in effect until the expiration date.

    The realtor and lawyer should handle these things, but it is also up to your son to make sure things are in place when buying a rental.  If he didn't ask, he's also at fault.

    1Reply
  • Wayne Brooks
    Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    4y

    @Kimberly Fisher These issues Should be addressed in the purchase contract and transferred/prorated At closing.  There is no “new” lease for the month to month..the current lease automatically becomes month to month.

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  • Bill B.
    Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    4y

    If you’re in a title state it should be right on your closing statement from the title company. I assume lawyer states do something similar. 

    0Reply
  • Kimberly Fisher
    OP
    Philadelphia, PA · Member since 2018 · 26 posts · 13 votes
    4y

    Thanks for your responses! Super helpful and we learned a lot for our next time.

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    4y
    Quote from @Kimberly Fisher:

    If it's not in writing, it doesn't exist. They should have given you the deposit at closing. I would contact the listing agent and remind them, but expect that you'll never see it. The prorated rent is the same. These things should have been clearly written in the contract so you could enforce it.

    I recommend you terminate the current renter and start fresh. There's a very good chance you're buying from a crappy Landlord that wasn't completely honest or competent. Remove the tenant and start fresh with someone you've selected and can train to work the way you like to operate.

    The DIY Landlord Book4.7248 Reviews
    WebsiteView Page
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  • Kimberly Fisher
    OP
    Philadelphia, PA · Member since 2018 · 26 posts · 13 votes
    4y

    Update: The security deposit was in fact in the settlement.

    Thanks everyone for your answers!

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