Legal dispute between current tenants and sellers

[Jean Sanchez]

Hi BP Community,

I am i

At the final stages of closing on a duplex in Indiana. Although this is an all cash deal, I was concerned by tenant statements during inspection, so asked everyone to sign basic estoppel certificates. The tenants completed the certificates and both the PM and owners signed off on them. However, the next day the seller’s agent sent us the sellers response to inspection and on it she stated that the PM and owners had signed the estoppel, but do not agree with all the statements on the estoppel and that their signatures do not indicate agreement. There is a significant disagreement about back rent on one unit (tenant wrote that last payment was given on June 2 and no back rent is due. Rent roll indicates that the tenant is more than 4 months behind). That same tenant indicated that he was pursuing legal action against the owner and had a court date set for September. The owner and PM did not indicate what they agree with on the estoppel and where they disagree. The numbers on the deal are strong and allow room for the eviction of at least the most problematic resident, but I, a.) don’t want to get dragged into their legal and financial drama, b.) I don’t want to be caught unable to get this tenant out of the building because he has pending legal issues against the previous owner. His lease is up at the end of July. The other side of the duplex has some minor issues of conduct, but I can handle those with a few property amendments (like adding a fenced in place to smoke outside and more garbage cans for the whole building) and a brief conversation. I need advice about the side with the huge rent backlog and the court date. I could do cash for keys and get them out either at the end of the lease or before, but I need to know if any action like that could be held against me because they have already filed for a court date to complain about the previous owner. Ok, now I am rambling. I apologize. Thank you in advance for any and all advice on the next move.