Outstanding Tenant Balances During Sale

[Eric Odum]

 I am in Florida, so I am sure there are specific laws for the State.  

Here is the scenario....tenant owes a small balance. They shorted  their rent payment $50 here...$75 there.  The total they owe is $400, now.  The apartment building is under contract and will close at the end of the month.  

The tenant acknowledges they owe the money and is willing to sign an estoppel to memorialize.  They plan to pay an additional $200 at the beginning of the month and another $200 the following month  (obviously, these payments will occur after the closing).  The way I have seen this handled in the past is, if the tenant fails to pay off the outstanding balance before closing, they sign the estoppel and their deposit, minus the balance owed is transferred to the buyer.  Buyer now has the remainder of the deposit and  the balance due.  Tenant owes the new owner money to bring their account current.  Tenant is on a month to month lease

Clearly, the seller should have nipped the situation with the tenant in the bud long ago, but this is what we are dealing with now

Curious how others have handled.  The buyer is complaining.