Need help? Process in purchasing two unit apartment.?
We are in process of purchasing of two unit building. Our closing date was Oct 1 but it got pushed back till Oct 15 due to credit issues.
One week ago, we requested the owner to ask if the 2nd floor could move out and we will give them one month free month since the lease was till Feb of next year.
Meaning, Closing date Oct 1, and they get one month free rent and they move out Nov 1. But the tenants are moving end of Sep So the Owner wants us to pay for the October rent since the closing date got pushed back and tenants are moving Sep.
Nothing was official we just asked if they could move out.
Now the owner wants us to pay for the October rent?
How can I get out of this?
Thanks in advance
- SlumlordLv 75 months ago
The way you "get out of this" is to tell them you won't pay this money. They still own the building, if the rent isn't paid for whatever reason, its their problem - they still own the place.
You may consider splitting it with them to be nice but if you refuse to pay they can't make you. They could, in theory, refuse to sell the place to you unless you paid but do you really think they are going to risk a 100k sale (or whatever) over maybe $500 in rent.
- babyboomer1001Lv 75 months ago
Until the actual closing, you have no power and control over the premises. And pushing the date from the 1st to the 15th is NOT pushing it back, it is pushing it AHEAD.
- Beverly SLv 75 months ago
What is the closing date on the contract? If it is Oct. 1st that means they and you will have to do an extension to the closing date. Either of you have the right to say no & get out of the sale completely.. They can also ask you to pay rent since it's on your end that the sale will be delayed. You can say either yes or no, but if you say no they can just cancel the whole deal if they choose to. If contract date expires after you will be already closed you can just say no..They can't force you to pay..Source(s): Mortgage lender 33 years.
- LollyLv 75 months ago
You have no reason to pay the rent. It is not your property until Oct 15 at which point you will have the vacant unit. They are only going to be out half a month's rent, which is not your problem. Your offer has nothing to do with this.
Your lawyer handling the sale should be answering this question.
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- A HunchLv 75 months ago
The current owner should have never done this.
What happens when you can't close on Oct 15 (or ever) and the current owner is out of a tenant? You can expect to be responsible for the rent until Feb or a new buyer closes.
- SimplytheFACTSLv 75 months ago
i assume the credit problem is with your credit....the ethical thing for you to do is cover the sellers expenses for Oct....offer half a month rent since closing is supposed to be Oct 15. the seller must continue to pay mortgage (if any), taxes, utilities, etc
- MaxiLv 75 months ago
The idiot selling to you was stupid enough to ask his tenants who he holds the contract with to move out without first getting a signed contract with you or a signed agreement that you would pay the tenants in any event of their early release of the contract.......so legally it is at his cost ........ morally you owe the seller the money .... if I was this seller first I would NEVER respond to stupid buyers who are already delaying because they can't get their money in order and second NEVER breach my contract with tenants in this way as you don't even own the place and can back out of buying.......
- 5 months ago
H e is losing money because closing got pushed back because of YOUR issue. Pay him the rent.
- curtisports2Lv 75 months ago
You didn't talk to the tenants directly. You made a request through the landlord that YOU would give the tenants one free month, based on you believing that you would own the place Oct 1. Well, that isn't happening now. YOU jumped the gun. Now, the seller was foolish for getting involved in this. I would have said to you, "No. The day after you close, you can have any discussion you want with YOUR tenant."
So, he can certainly ask you for October rent and you can certainly say no, and he can certainly take you to court and let a judge decide if you owe him. If he wins, you'll be paying his court costs, too, which could double the amount.
So if you're going to close by October 15, I would try negotiating. Offer him the choice of taking half of October rent or taking you to court over the other half.
- realtor.sailorLv 75 months ago
You don't owe the seller for any rent! You're not responsible for anything until closing.