Estoppel and Lost Leases

[Christopher Freeman]

Howdy BPers!

I recently came to terms on a 3 family property in New Hampshire, and have included the completion of estoppel certificates as a condition of the sale. Today I learned that the Landlord may not have copies of the lease. I suspect that the same may be true for some or all of the tenants.

My questions are:

1. If nobody can procure a written lease, can I compel the execution of a new lease under my terms by giving notice?

2. If neither party can procure a written lease, but certify that one exists in the TEC, does that bind me to the terms disclosed therein?

3. Can I add a provision to the TEC that requires the presentation of a written agreement in order for it to be binding and that, absent this proof, a month to month tenancy will be established at the disclosed rate?

I understand that the tenants in place have rights and that my preferences have no bearing on that. That said, to the greatest extent legally and ethically permissible, I would prefer not to be subject to term leases when I take possession. One of the tenants is appallingly filthy (think poop on the walls), and another smokes indoors. All rents are severely below market.

My goal here is to understand how much latitude I have during the stabilization process, and to ensure that I don't give up flexibility during the estoppel process.

Thanks,

Christopher M. Freeman | Co-Owner

Parabola, LLC | PO Box 282 | Keene, NH 03431