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Updated over 4 years ago on .

User Stats

119
Posts
129
Votes
Ramsey Blankenship
  • Rental Property Investor
  • San Diego, Ca
129
Votes |
119
Posts

Seller may die while under contract...what happens next?

Ramsey Blankenship
  • Rental Property Investor
  • San Diego, Ca
Posted

Under contract for a Multi-Unit complex in which the seller resides. The seller has become bed-ridden and it seems very serious. We discovered the severity of the issue in a very abrupt, odd way. 

Our team scheduled an inspection of the entire premises, to include the owners living quarters.  As per our contract, it is mandated we have access to all premises before the inspection contingency deadline. As communicated and scheduled - our team, the listing agent, and maintenance person arrived for inspection. The owner self-manages and uses the units as weekly rentals without leases.   

Of the 17 units, we were able to access 6 and complete a formal inspection on one. Tenants were in the units and were not notified, therefore we did not have the authorization to interrupt their day to do full inspections.

Then it hit us - "GET THE F*** OFF MY GD PROPERTY!" screeeeaaaamed across the courtyard! The sellers wife lost her mind. She kicked the inspector off the roof and yelled everyone - to include their listing agent, off of the property. It was the weirdest thing I have ever witnessed.

I do not know the details, but the seller is sick - COVID is a thing - and I can understand limiting exposure during this time --------BUT, we communicated EVERYTHING clearly, paid $1,700 for an inspection, lined up a contracting company, and did exactly what we said we were going to do. A simple - "Hey we have a medical issue going on, please stay away from these spaces at this time" would have worked. 

Either way - emotions removed - I have three major concerns:

1. If the seller does pass away - what happens? I imagine it depends on how his estate is set up - if it is.

2. If we do close, and the seller is unable to move out because of illness, do I refuse to close until they can vacate? - that could take months/years

3. If the seller tries to back out of the contract because priorities have shifted - not to be insensitive - but we have spent a lot of time and resources on this project - what are my options. My fear is the downward spiral of taking a seller to court while they are going through this. But in my defense, I am simply trying to buy something this person is selling. 

Any advice would be much appreciated.

-Ramsey