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Updated over 3 years ago,

User Stats

58
Posts
15
Votes
S Harper
  • Real Estate Investor
  • Denver-metro, CO
15
Votes |
58
Posts

Seller disclosure said leased appliances - no, turns out yes

S Harper
  • Real Estate Investor
  • Denver-metro, CO
Posted

Here is an odd one that I would love feedback on.

Bought a multifamily with a shared laundry room which included a coin operated w&d.

Seller (let's call him Steve) disclosure had a line asking if there were any leased appliances. Seller Steve said no.

Forward 5 months after closing. I need to service the washer, repairman asks for the key to open it and my local partner wasn't given one. Called Seller Steve to ask for the key and he said "We didn't own those. They are leased."

Found out who Seller Steve leased with. I will call him Laundry Larry. Larry said that Laundry Company don't do commission on such small multifamily units, it would be a lease to rent and owner would have the key to empty the coinbox.

I asked who has been paying the lease these past 5+ months since I haven't heard from Seller Steve or Laundry Company at all. Laundry Larry said his company has just been collecting the coins every month and not getting paid a lease rent. So this is odd because he said they don't do the commission service agreement for properties this small. Just rental leases.

Laundry Larry told me the lease was assignignable and transferred to the new owner at sale. 

Seller Steve did not communicate this at any point. There is nothing in the paperwork. In the disclosures it says no leased appliances. 

Laundry company has not communicated with the buyers at any time over the past 6 months.

Laundry Larry said a washer and dryer are leased to that property, but only a washer is there. 

Laundry Larry said that is between buyer and seller to sort out. I am thinking that it is between the two parties who are on the lease to sort out (Laundry company and Seller Steve). Not the buyer.

Thoughts?

Thanks!

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