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Updated about 8 years ago,

User Stats

84
Posts
20
Votes
Stanci March
  • Rental Property Investor
  • Lawrence, KS
20
Votes |
84
Posts

Buying property with tenants in place - Lease Verification

Stanci March
  • Rental Property Investor
  • Lawrence, KS
Posted

Is there some legal reason that would preclude a Seller from providing copies of leases to a potential Buyer? I'm under-contract for an eight unit multifamily and the Seller was refusing to provide me copies of her current leases until at the closing table. This is my first deal so with all the talk about phantom leases and such I definitely wasn't about to move forward with the deal without a chance to review the leases prior to closing. I'm in for about $4k already not including earnest money so it would have burned to walk away but not as bad as making a bad deal.   

I did finally get all the leases today, three days before closing. Thankfully because I've been going through them for 90 minutes, matching up all of the information with the rent-roll spreadsheet she provided earlier. Everything checks out but I can't imagine trying to do all of that at the closing with everyone sitting around staring at me. 

Her premise for not wanting to provide them was that she could not do so legally because of her obligation to protect her tenant's privacy. My attorney basically called her on that and suggested she check with her lawyer to get herself straightened out. Just wondering how others feel about this, particularly those with legal expertise.   

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