Acquiring property and seller can not locate tenant leases

[Jason J.]

I'm under contract for a commercial property and the seller is very disorganized. They are unable to locate some of the tenant leases for the property. The tenants they can not find the leases for... the seller is stating that their terms are expired and they are month-to-month tenants. Some have been there for 10+ years.

The leases he did locate... those leases are very rudimentary and have no provisions for assignment of the lease with sale of property. AKA no "SUCCESSOR AND ASSIGNS" clause.

The property has commercial tenants only (no residential).

Any advice on how to proceed?

[Cason Acor]

I would negotiate a significant price reduction because the property is approaching the realm of being undeliverable, unless you’re paying cash. 

Also in my state, lease succession to new ownership is automatic by law, no provision written in the lease is required. I would double check local law for where you are purchasing, because I’ve actually never heard of any law requiring a “successor and assigns” clause. But that could also just be my ignorance.