Did we mess up?!? House hack ownership transfer issues
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, shouldn’t 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.
- Rental Property Investor
- Hanover Twp, PA
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Did your son's sales agreement contain this addendum? This is the standard addendum used by realtors in Pennsylvania for tenant occupied sales.
Did your son have his own buyer's agent? If not, was the seller's agent acting as a dual agent or just as the seller's agent? (This could be an important distinction).
If this addendum did exist, then as you can see the leases should have been signed over along with any monies at closing. I would go to the closing title company to see why that didn't happen because they should have ensured along with the agent that it did.
If this addendum was not used, then I would contact the broker of record (supervises agents in the office) for the office of the agent that represented your son. I would try to get them to compensate your son for the lost monies at least. They carry errors and omissions insurance for issues like this.
Not a current agent, although I have been previously a real estate agent.
But yes, the crux of the issue is that your son's agent didn't fully complete his obligations with regards to his duties to your son.
Kevin's post above pretty much covers it as far as:
pro-rated rent, security deposit, currently active leases.
Also, going above agent's head to the manager/broker of record is definitely appropriate by now.
oh, boy!!!
Security deposit and prorated rent should have been credited to him at closing by reducing his closing costs by that same amount. If they were not, he is out of luck and on the hook for the security deposit himself.
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all good questions and all good things to get taken care of... I would just work on getting the new lease resolved ASAP and not worry about the amounts...
divide them over the life of the property and they'll be trivial
also nothing wrong with property management even while house hacking
- Property Manager
- Royal Oak, MI
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@Kimberly Fisher everything starts & ends with the purchase contract.
if these items were NOT covered by the purchase contract, why did your son sign it?
Why are you here ASKING for advice, but you didn't GIVE any advice to your son?