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Updated over 4 years ago,

User Stats

12
Posts
3
Votes
Daniel Bogart
  • Rental Property Investor
  • San Diego, CA
3
Votes |
12
Posts

Seller didn't made off with prepaid rents, now what?

Daniel Bogart
  • Rental Property Investor
  • San Diego, CA
Posted

Hi BP,

A few weeks ago a few partners and I closed on a 10 unit apartment complex. It wasn't until our property manager collected the first month of rent that he had tenants in two units tell him that they had prepaid the next three months of rent to the previous owner (about $6K total). The tenants have documented these transactions, but the seller never disclosed it to us during the closing process. The seller was difficult through the transaction, and refused an estoppel on the grounds that she cared too much about her tenants and didn't want to disturb them. Clearly this was BS and I have zero expectation of the seller politely giving us the prepaid rent.

What's the best way, if any, to recover the funds?

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