All Forum Posts by: Patricia Steiner

NOOOOOOO. First, you don't have the legal right to alter the property since you don't own it and you haven't even met all the closing contingencies yet since a Loan Commitment has not been issued.  And, if something goes wrong with your financing and/or something happens at the property, the seller could claim that you damaged his property, failed to close, and make a monetary demand - or even charge you legally with trespass/more. Vacant - doesn't equal permission to access; the neighbors call the police everyday as vacant properties really are a nuisance.  Never happens?  This and more happens every single day.  Never put yourself in a situation where some crazy idiot can put you in jeopardy.  Waiting until you own the property before painting will be faster than having to clean-up some manufactured chaos that results from altering a property you don't own.

Congrats on your soon-to-be new property.  Hang tight to the close...it's worth the wait.

If your lease doesn't have an early termination provision, then State Law applies. If the property is in Boston:  "While some states charge up to the entire amount remaining on the lease, most Massachusetts residents just have to pay a penalty of one or two month's worth of rent; 30 days notice is required." As of Apr 15, 2021 (End).  What you cannot do is require them to become an agent on your behalf and find a tenant.  I recommend:

1. Having them put their terminate request in writing (email is fine but no text as it is not acceptable in courts) stating the reason for the termination and that their last day will be February 28th by 5:00 p.m.  

2. Respond that you will agree to accept early termination in consideration for a penalty of 2 months rent ($xxxx.), their cooperation in making the unit available for prospective tenant showings during that time, and that the unit will be surrendered on or before February 28th at 5:00 p.m. in the same condition as when they moved-in and free of all possessions, trash, and cleaned.  Penalty payment shall be due upon acceptance of this agreement (or whatever you negotiate with them). It's important that you collect it prior to their departure because some folks have been known to skip the last month's rent and the penalty payment.

3. Arrange for a final walk-through with them once the unit is vacated before returning any security deposit; 
  
4. Begin marketing the unit for a March 1st move-in at new market rent.  Consider scheduling showings on one day like a Saturday at 1:00 as to not disrupt the current tenants from packing up and/or disrupting their peaceful use of the property as is their tenant right.

And, get a better lease.  A 3-year lease is no gift to landlords as it prevents increase in rents for three years, results in more early terminations than a one-year term, and if you get a bad tenant - 3 years is a lifetime.  A solid lease will have that early termination clause, require renter's insurance, and have an addendum stating the property rules (like "this is a drug-free/crime-free property" and more).  I also recommend that you search online for your state's Landlord-Tenant Laws; they are readily available and you need to know them. There is no winging it if you're a real deal investor.

Hope this helps...

Geez...this sure isn't what I would have recommended you do. But start with your right to cancel a contract in the state of California:  "The cancellation provisions are found in Paragraphs 14C (1) and (2), and in Paragraph 14E of the CA-RPA. Regardless of the reason, the seller must give some type of notice to the buyer, however (either a Notice to Perform or a Demand to Close Escrow) before the seller can cancel."  Check your contract and make sure you have this language in it.

If so, I recommend that you cancel the contract immediately; to do so, you will need to have your realtor prepare a cancellation addendum with you will sign, get the buyer to sign, before sending it to the title agent for return of the buyer's escrow.  

Next, take the property off of the market.  You can do a "temporarily off market (TOM)" status or just withdraw it.  Then, you need to do this:  WHAT IS YOUR HOUSE WORTH AS IS?  You can determine this through comparable sales, a Broker's Price Opinion, or engage an appraisal.  You don't sell without knowing what it is worth...and once you set the price and list it AS IS - don't start deducting for repairs; it's AS IS at that price.  You're undermining yourself.

Also, you can blame this on the realtor but you went on this ride.  The realtor is required to present all offers but a lot of stupid gets presented.  Before you list, you and the realtor must be on the same side and the realtor gets to deal with the buyers' chaos - not you.  The realtor represents the property and you - so make sure that she knows that you're not giving the property away and you're not negotiating repair costs.  

Please consider bolting from this madness. If you decide to change realtors, don't be surprised if you find out that you can't without having to compensate that realtor too. Review your listing agreement to determine how to terminate cleanly.  

Real estate transactions are based on conflict and most of it is needless conflict.  Set your parameters, know what your property is worth, and detach from all the manufactured chaos.  Bolt!

You need to deliver notice via your state's approved method - and text will not be one of them.  You will most likely need to send it via USPS with "proof of delivery" service and/or by overnight mail with proof of delivery provided.  We also post the notice is a sealed envelope with the tenant's name/confidential on their door and take a photo of it as proof.  The courts have ruled that text is not proof of delivery and when used in court, you are required to surrender your phone to the court with other filings.  

Do the hard copy notice and be done with it...hope this helps.

There's something wrong here...first, the title company doesn't represent you whether you choose them or not. Their role is to settle the transaction, that's it.  And, when a buyer chooses the title agent in most real estate transactions, guess what else the buyer gets for that privilege?  The cost of the seller's title policy as well as your own.  Also, this isn't an off-market deal if there is a realtor involved.  It's being marketed in some way - inhouse, signage - something...and realtors don't work for free.  There's something you don't know that is in the mix.  And, the buyer submits the offer. If you're not represented - and you are NOT - then you would be using the seller's contract for the sale.  Unless you're an attorney or a realtor/broker, your contract will most likely not meet the state bar guidelines leaving you at risk for various protections.

Please step back from the transaction and get some bench strength.  Consult with a real estate attorney or get your own realtor. There's something going on here that is beyond what is being disclosed to you.  "Let the buyer beware" is more than a catch phrase; it's the real deal in investing.

"Pre-foreclosure" is a term that is misunderstood often...it indicates that "lis pendens or notice of default is filed (consider it a lawsuit) until the property is sold."  This greatly discourages any transfer of title until litigation is resolved and most title companies will not issue clear title during this time as the title is in play.  

Also, please know that these will not necessarily be below market deals as the interest, penalties, and lawyer fees attached to these properties as a result of the default are significant. Can you give a lowball offer on these properties?  Yes, but don't bother. Those offers do not meet the investor parameters/guidelines that lenders must follow when a deficiency balance will be created.  

As a former senior banker, I don't recommend chasing these deals...you'll be wasting your time once Lis Pendens is filed. The days of getting a cheap deal from a foreclosure are long over. There are better avenues than this...

Best.

No...Umbrella Insurance is a supplemental policy to your property insurance that kicks in if the costs exceed that of the property insurance. Depending on the type of property you have, you'll need HO3 (Homeowner's) as a minimum. Having your Tenants purchase renter's insurance is great - but make sure they acquire it as "with Landlord as additional insured" so that checks are payable to both of you for damages. You'll also want proof of engagement prior to the tenants moving in along with their security deposit. Here are two articles that are worth reviewing on Umbrella Insurance and LLC versus Umbrella for best protection:

https://www.investopedia.com/a...

https://www.apartments.com/ren...

Hope this helps...

@David G.

There are some things you can do to take control away from a tenant who is digging their heels in about departing.  Here are some to consider:

1. Relocation Assistance (California Law):  "https://www.flgch.com/blog/wha...Due to the housing crunch in your state (we have it here too), Landlords with "no fault tenants" can be left with paying one month's rent to the departing tenant for relocation.  

2.  Offer to have a realtor assist them in finding a new place and make an introduction/appointment for a realtor to visit her.

3.  Remind the tenant that she obviously has not been happy there for quite some time as evidenced by the problems she has had with other tenants - and that this is her opportunity for a fresh start.  Let her know that you cannot honor her request to have her mother added to the lease and her mother cannot continue to be a long term guest as per the lease. 

4.  Don't back down.  In most cases where the tenant is fighting it, once you calmly hold your ground ("I know this is a big change for you and I know that in 60 days time, you'll be able to find a new home for you and your mother to share").  And, try to force all communication to be via text or email so it is documented and she doesn't attempt to accuse you of anything.

5.  Communicate consequences.  I've had to flat out tell a tenant that if you don't depart on time per the Notice, there will be consequences that neither of you will enjoy - and they include you filing for eviction on the 61st day which will make it difficult for  her to get quality housing and it will hurt her credit.  State that you don't want to go that route and you don't want it for her either so she should use the 60 days to explore other options and find a new home.

If she doesn't depart by the end of the 60-day notice, you would file for eviction.  It's pretty cut and dry when the cause is non-payment of rent and/or the lease has expired - with the later most likely resulting in you having to pay her the assistance fee (well worth it). The absolute thing you have to get right the first time is giving and serving the notice; it's a dealbreaker if not done correctly.

Hope this helps...

I have a different take on the issue:  what does your lease state about this?  Our leases state that you cannot leave personal items in common areas, no smoking is permitted on premises, and that the property is drug-free.  All this is disclosed prior to renting the units and it's all in the lease.  And, as a side note, the American Apartment Owners Association has found that the #1 reason why landlords fail is "failure to manage to the lease."  In my case, I would send a notice to all the tenants advising that items consisting of (whatever it was) was found in/on the property - and per their leases, this is a lease violation and state the ones that apply.  Give them five days to cure the problem (like how stone do you need to be that you leave your bong on the stairs?!!  Take your toys with you!).

While some drugs are now considered legal, I would not want visitors/potential tenants to perceive my properties as places where we advocate drug usage or that it's okay to leave personal items wherever you leave them. Manage to the lease and expect the property to be respected.  

Just my opinion...

First, it's not just an inconvenience but actually is against the law in Texas and most other states:  "According to Texas Transportation Code Sec. 545.302, drivers cannot park in front of a driveway, whether public or private. This also goes for blocking a driveway belonging to first responders such as firefighting vehicles."  And, I think most drivers on a road like yours aren't paying attention to the driveways but just trying to get past the traffic light.  I recommend posting the sign.  If the blocking continues, you will certainly have more credibility in discussing the problem with the Transportation Department of the municipality and/or even with police administration.  It shows that you have attempted to resolve the issue prior to coming to them for assistance.  And, yes, been there - done that.  I've learned there's a lot of power in a well-placed sign.

Hope this helps...