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Updated almost 3 years ago, 02/17/2022

User Stats

61
Posts
16
Votes
Gail W.
  • Rental Property Investor
  • Running the Earth, watching the sky
16
Votes |
61
Posts

Seller rent back refusing lease/security deposit- AFTER close!

Gail W.
  • Rental Property Investor
  • Running the Earth, watching the sky
Posted

I don't know if this is a request for some creative ideas or a cautionary tale...

We just closed on an investment rental property in a rural area above Phoenix. The seller asked to rent back for a month, to close on her next place. We agreed, but told our realtor to add in OUR lease with a security deposit; just as we do with any regular renter. She sent it to the listing agent, who got the seller to sign, but then the seller became angry and tracked us down and called us on an old phone number, SCREAMING that it was "her house for the entire month" and she shouldn't have to sign anything, much less PAY a security deposit. Flat out REFUSED. This was days before closing, so we didn't have time to change anything.

We come to find out, within minutes of funding, the lease was "blurry" in the Docusign her relator used, so NONE of our custom entries or her signature are legible!! (We missed that at signing; we were preoccupied with a 6 plex we are closing on that has all the regular issues buying a 6 plex has. No excuse, but this sale had been going very smoothly, and we had no reason to doubt or worry.)  So we sent a regular lease via email/mail/hand delivered. You guessed it, no response. ALSO, come to find out, this woman is clinical bipolar; the realtor tells us AFTER all is said and done. Which would be fine, if she would take her meds and conduct herself in a responsible way. She sends us texts and phone messages where she just rants on and on about her poor life. 

Now, we have no lease, no security deposit and just the escrow instructions spelling out the rent back for 1 month (terminating on Feb 28). And now we see she has posted on social media that she wants to list the home on AirBnB!! Of course, we have a no sublease clause, but SHE WON'T SIGN THE LEASE. Realistically, not sure she'll be able to rent it out with only 2 weeks to go... IF she is REALLY moving on the 28th...? She's also got a Zillow ad where she tried to sell the house herself (for over $100k normal prices and what her agent listed it for/we bought it for). She will not relinquish ownership so we can create our rental listing. We have told her we won't show it while she is there. 

All of this is a bunch of red flags... we're worried she lost out on her next place and is planning on staying longer, without the lease or security deposit. Or she intends some other shady business.  Our only recourse is eviction if she won't move on the 28th. Our attorney has stated the only thing he can think of is do a 2 day notice of inspection. If she refuses, we can proceed with eviction process. But I hate to open that can of worms if she really plans on moving, so we'll wait and see. 

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