Appraisal and estoppel questions

[Stephen Barnabei]

Hello BP family,

  I’m under contract on a triplex in Propspect Park, PA, Delaware county. The property just appraised for $5k over the sale price and the deal in still on, 2 weeks until settlement. Property as is- where is.

First, the sellers agent requests a copy of the appraisal which I was told by my lender and agent that it’s not common or recommended to share the appraisal and I’m not obligated to. The selling agent insists that the agreement of sale entitles the seller to copies of inspections and appraisal. I haven’t seen this anywhere in the AOS. It’s a standard Pennsylvania of Realtors AOS agreement. Is this true? 

I don’t see any harm in sharing since the appraisal came in only $5k above our agreed price but I requested a few things that they are dragging their feet with getting back to me so I don’t want to rush getting them something that isn’t even required, to my knowledge.

The current owner is older and responds very slowly. The property is owner managed and very poorly managed I must add. The leases are sloppy, incomplete and not even sure if actually binding. 

When the tenants found out the owner was selling, he agreed to extend everyone’s lease one year. When they gave us copies of the leases, all he did was change the ending lease date to 2019 but signatures are from 2016 and they don’t have a lease amendment and seller and tenant didn’t initial the change on the lease.

I’ve requested and supplied an estoppel form to be fully filled out and signed by tenant and owner and for the leases to be initialed properly for the recent changes.

Selling agent says he can’t make tenants fill out estoppel and owner isn’t making much effort to get it filled out either. Without an estoppel form or legally binding leases, I can see problems coming up in the near future that I’m trying to avoid. 

Should I just request they make new leases that are properly filled out with proper signatures? 

I could even supply them with my lease with the current owners name since I will be bound to the current lease after property transfers to new owner (me).

Thanks in advance for any advice you can provide and please let me know if you need anymore info.

[Wayne Brooks]

I would let the lease sleeping dog lie.....right now it appears they have no binding lease, so you have flexibility to put them on month or make them sign Your lease.
Not familiar with PA contracts but I’ve never seen a requirement where the buyer Had to supply even inspection reports, let alone appraisals unless there was s appraisal clause you were taking advantage of. To the listing agent, simply “show me in the contract where I have to provide those”.