Due diligence requests for tenant info

[Giovanni Ceron]

Hi, Purchasing my first property! I'm currently in the due diligence phase now that my offer has been accepted. This property has a tenant, and I am not sure how to proceed with getting pertinent documentations regarding the lease agreement in place, and possibly background checks. Should my realtor take care of this? The title company?

[Wesley W.]

Under attorney approval, I would have your attorney require an estoppel agreement, signed by both the tenant and the seller.  Here is a bit of what I have my attorney add to the contract:

8.) Estoppel agreement completely filled out and signed by each tenant and signed by owner.

8.) If seller has no security deposits with tenants, then he must secure them prior to closing or purchaser shall have the right to terminate the contract

8.) Seller agrees that it shall not enter into any new Leases or modify any of the existing Leases without the prior written approval of Buyer prior to closing.

The estoppel agreement I use:

1. Legal tenant name(s), and names of all people (including minors) living in rental unit:

______________________________________________________________________________________

___________________________________________________________________________________________________________

Address and apartment number: ___________________________________________________________

2. I have signed a written rental agreement / lease for this apartment. YES or NO (circle one)

If you answered YES above, do you possess a copy of that written agreement? YES or NO (circle one)

3. I have been living in this unit since _____/______/_______(date).

My current lease ends on _____/_____/____(date) OR My lease is month-to-month YES or NO (circle one)

4. My rent is $______________per month or week (circle one) and is due on ____________________.

5. I participate in a housing assistance program (such as DSS / Section 8) YES or NO (circle one)

If YES, please indicate which program(s) assist you, how much they pay, and your contact person there:

Program: ______________________ Amount they pay: $ ___________ Contact name/ph #: __________________

Program: ______________________ Amount they pay: $ ___________ Contact name/ph #: __________________

6. I have paid a security deposit. YES or NO (circle one) The deposit amount is $ ______________.

7. My most recent rent payment was made on ____________, 20_____ (date) for the amount of $_______________

8. I am responsible for paying these utilities :________________________________(Write “none” if applicable)

9. Any other deposits or pre-payments are as follows__________________________________(Write “none” if applicable)

10. The appliances I own are:_________________________________________. (Write “none” if applicable)

11. Smoking occurs inside my rental unit. Yes or No (circle one)

12. I have an animal. Yes or No (circle one) How many? _______ What breeds/weight? _____________/_______lbs.

_____________/_______lbs.

Yes or No (circle one) I have paid a non-refundable pet fee in the amount of ______________

Yes or No (circle one) I pay a higher monthly rent due to my pet(s) in the amount of _____________

13. Other written or verbal agreements I have with the landlord are: (Write “none” if applicable.)_____________

_________________________________________________________________________________________

14. Any problems related to my tenancy or any repairs that are needed are: (Write “none” if applicable.)

_________________________________________________________________________________________

FOR YOUR PROTECTION, DO NOT LEAVE ANY BLANKS – WRITE “NONE” IF APPLICABLE

Signed by tenant ____________________________________________ Date: ____________

Signed by tenant _____________________________________________ Date: ____________

I have reviewed the answers given above and agree with the tenant’s statements regarding their payments, agreements and deposits.

Owner: _____________________________________________ Date: ___________