Today we want to talk a little bit about tenant occupied real estate when you are either buying or selling. If you are selling real estate property and your property is currently occupied by a tenant, you need to find a buyer that is happy with a tenant occupied property and a buyer that is willing to buy that property subject to the tenant’s rights.
You can of course get into some kind of agreement with your tenant prior to selling the property, whereby the tenant will leave once you close. But absent such an arrangement, the buyer has to be agreeable with taking the property subject to the tenant’s rights.
In connection with that, there is a very important document that is often missed. It is called a Tenant Estoppel Letter. That is just a fancy way of saying that it is a formal document that basically lays out what the tenant pays, what the landlord is holding in a security deposit, whether or not there are any claims pending against the landlord or any other issues that the buyer wants to be aware of, and it also notifies the tenant that once that transaction closes, the old owner is no longer their landlord and that they have a new landlord.
So these are just part of the things that you need to make sure are in place when you are buying or selling tenant occupied real estate in order to make sure you have a smooth real transaction and that you know what you are getting into.
So if you have any questions regarding tenant occupied real estate or any other real estate issues, feel free to give us a call, we are here to help.