Property with Existing Tenants - How to transfer the lease?

[Yvette Chung]

Hi! Does anyone know what kind of document needs to be included in the sale when selling/buying a property that comes with existing tenants? How can I, the buyer, make sure that everything is transferred to me properly and legally at closing (including security deposits) ? Do you have any sample agreement that you can share?

Thanks a bunch!!

[Frank Chin]

@Yvette Chung

I bought and sold properties with existing leases.

The seller presents to the buyer a tenant estoppel letter verifying the terms of the leases. See Tenant Estoppel letter

Aside from honoring existing leases, the seller landlord assigns the leases to the buyer landlord via a lease assignment. Tenant is thus notified the rent payments will henceforth be legally paid to the buyer of the property via the assignment. See Lease assignment by landlord 

At the closing, buyer landlord gets the assignment, security deposits transferred and pro rated rents for the month collected. These matters are usually handled by seller attorney or title company.