Purchased Property with a Tenant, but Prior Owner Amended Lease Prior to Sale

[Trevor Borg]

Hello everyone, long time reader, researcher, podcast listener but first time posting, as I finally closed on a rental property a few days ago (wish I was posting on a slightly more positive note).

I tried to search through the forums and haven't seen anything on my precise situation and wanted to post here for some advice if anyone has dealt with something similar. As mentioned, I just closed on a rental property (duplex in the DFW area). One side of the duplex was vacant while the other was occupied with a lease ending in approximately 4 months. I reached out to the tenant immediately after closing in order to work out where rent should be sent going forward. However, the tenant informed me that they had signed a transfer agreement with the prior owner (a semi-large rental property/management company) to change houses and swap the lease over to another property owned by the sellers. I have seen the agreement - it was signed a couple weeks before closing and contemplated a move two days after closing. The seller did not mention this in their disclosure or otherwise and simply represented that a lease was in place (and sent the old lease). 

It seems like I should be able to get some recourse since this was not disclosed anywhere and the documents the sellers did disclose were amended without my knowledge. That said, it seems like hiring a lawyer could cost nearly as much as the rent money I could recoup. 

Has anyone dealt with anything similar or have any advice for a relative newbie investor?

Thanks in advance!

[Zane Cress]

I think this is in your favor. Now you have two empty sides and are free to adjust to market rent as you see fit. Take the opportunity to paint both sides and do any work that can boost rent values. Sucks they were dishonest in a way but you are free to do what you want now without having to follow their lease. I prefer to buy things without tenants or at the end of a lease.