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Updated over 9 years ago on . Most recent reply

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Michael Seeker
  • Investor
  • Louisville and Memphis, TN
1,019
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What happens to pet fee on transfer?

Michael Seeker
  • Investor
  • Louisville and Memphis, TN
Posted

I'm getting ready to close on a property where there are two different units where nonrefundable pet fees were charged. I have no idea how the seller/PM company is going to try to address this on the HUD (if at all) but can think of 3 ways it could be handled.

1. Seller keeps the pet fee

2. Buyer gets the pet fee

3. Pet fee is prorated between buyer/seller based on portion of lease completed

I think 2 makes the most sense seeing as the buyer will ultimately have to deal with any damages/problems from the pets.  3 also seems reasonable since seller had potentially higher liability while owning building.  But I have a feeling the seller will opt for 1 and I'll have to provide some rational reason as to why it needs to be 2 or 3.  Any suggestions or am I off base in thinking a pet fee should transfer with the property?

If anybody has bought/sold property where pet fees were part of the lease how it is normally handled?

Most Popular Reply

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Julie Haveman
  • Multi-family Investor
  • Allendale, MI
51
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121
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Julie Haveman
  • Multi-family Investor
  • Allendale, MI
Replied

We have purchased 2 different properties that the owner had collected a pet fee on. The were not on the initial HUD statement, both times I requested them and received them!

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