Seller got a new tenant while the property was under contract.

[Sharad M.]

Hello all,

So I have this 4-plex under contract. The unit was fully rented out until a week ago one of the tenants had to move out to take care of some family. The seller without checking with me filled the place with a new tenant starting May 1, and we are supposed to be closing around that date. My agent says that they are not supposed to do that. My agent is gonna check to see if it's still a valid contract, but what do you guys think? I am just worried that he may have given the place to any one to rent the place and now might be dumping his problem on me.

I understand that the place was rented out when I looked at it, and he just replaced one tenant with another. But I feel like he should have checked with me while the property was under contract. You guys have experience with this?

Thanks!

[G. F.]

If the tenants payed in cash, he should of issued receipts. Ask for copies. You can also ask him to fill out IRS form 4506-T which is a request for a copy of his tax return. He should of listed all income obtain from the property.

When closing, be sure to get the security deposits. Many landlords get stuck having to pay this out once a tenant moves or has to be evicted because they didn't collect it from the previous owner.