Inheriting a tenant, no lease, no security deposit

[Bill Lake]

Closing on my first househack. As is sale.

There is a tenant in one unit, who's been there for 12 years. Tenant remodeled the unit, has good relationships with the owner(seller) but was cought off guard by the sale of property.

He is planning to buy the next dwelling and asked for extension of his stay.

I, knowing little about possible issues, gave him a verbal agreement that he can stay until the end of June. Current lease and security deposit was requested but the seller's attorney says that it is month to month with no lease and no security deposit, they are offering an estoppel letter from the tenant. I am requesting 1 month rent as a security deposit and lease signed until 30 June. My agent and lawyer both are convincing me that I am making it bigger than it is. Will appreciate any advice. Thank you

it is. it is and that I should just take the tenant with estoppel letter. Will appreciate any advice.

Thank you

[Joseph Cacciapaglia]

I do not like to close on homes without a lease in place, but have occasionally worked on deals where estoppel letters where used. Of course, I'm in a very landlord friendly state. I don't know what IL is like. However, the security deposit is another matter. From the tenant's perspective, it probably seems ridiculous to provide one after 12 years of lease payments. I would just ask the seller to provide a discount or credit to compensate you for not having a security deposit. If they say no, I wouldn't push it, if I really liked the deal. If the deal is so tight that one month's rent will break it, that's the real problem.