Form buy has existing tenants sign prior to purchas

Form buy has existing tenants sign prior to purchas

Rental Property Investor · Cleveland, OH · Member since 2017 · 7 posts · 0 votes
What is the name of the form that a buyer of a property with existing tenants has the tenants sign stating that their lease is correct and that they do pay rent. Does anyone have this form to send out?
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  • Investor · Chicago, IL · Member since 2016 · 1k+ posts · 930 votes
    8y

    I've never heard of tenants having to sign anything in relation to a sale. 

  • Rental Property Investor · Cleveland, OH · Member since 2017 · 7 posts · 0 votes
    8y
    @Ray Harrell it’s not that they have to for the sale to proceed but the buyer has them sign it to ensure the seller is not pulling a fast one.
  • Investor · Clairemont, CA · Member since 2011 · 3k+ posts · 2k+ votes
    8y

    You're thinking of an e-stoppel, it just gets the tenant's concurrence that the lease provisions are XYZ. It should in theory just confirm what is already in the lease, but if not it lets you know before closing.

  • Rental Property Investor · Cleveland, OH · Member since 2017 · 7 posts · 0 votes
    8y
    @Matt Devincenzo yes yes that’s the word I was looking for. Thank you
  • Investor · Chicago, IL · Member since 2016 · 1k+ posts · 930 votes
    8y

    I didn't know the tenant had to sign. I thought the seller just attested that the rental information is accurate, and also assigns lordship to the new owner.

  • Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
    8y

    An estoppel agreement for the tenants is voluntary, and usually not needed. However, if you cannot get a copy of the lease, I would absolutely ask the tenants to sign one. Or if there's any questions that the tenant is getting an extra discount for mowing the lawn, or being a caretaker, or whatever reason. 

  • San Carlos, CA · Member since 2018 · 10 posts · 1 vote
    8y

    Scenario: Seller can't produce a lease agreement, tenant signs Estoppel and is month to month. Buyer is comfortable with month to month.

    Question: Do you have the tenant sign a new lease at COE?

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