[WSBAPT] Closing of home & leasehold

Fri May 27 17:02:03 PDT 2016

Thanks for all the helpful advice. The buyer's lease also will end closing
to the closing date, and the buyer has a family of 5. The storage, having
to move twice, finding temporary housing for 5, etc will cost some money
and also is a lot of headache.

All your advice was really helpful. Thanks!

Jennifer

On Fri, May 27, 2016 at 11:01 AM, <pugetsoundlaw at gmail.com> wrote:

> Depends on the terms of the lease.  Some leases provide for early
> termination upon sale, usually with some sort of notice to the tenant –
> doesn’t sound like that is the case here.
>
>
>
> A common provision in most of the lease forms that I have seen is that a
> sale does not affect the lease, that upon sale the prior owner/seller is
> released, and the tenant is to look solely to the new owner/buyer for
> performance of the landlord/owner’s duties after closing.  It is common for
> residential real estate to be sold from investor to investor without any
> prior notice to the tenants.  The new landlord takes over for the old
> landlord, takes subject to the leases, notifies the tenants after closing,
> and the status quo continues for the tenant.  The leases, tenant info, rent
> rolls, transfer of deposits, etc should be reflected in the P&S documents.
>
>
>
> However, a lease that provides that the seller is released (as to the
> tenant) and lease obligations are assumed by the new owner certainly
> doesn’t relieve the seller of his duties to the buyer as agreed to under
> the PSA.  If the PSA did not contemplate the existing tenancy, such as when
> the buyer plans to occupy the premises personally, then the seller has a
> problem as to the buyer.
>
>
>
> It’s surprising that the realtors weren’t aware of the tenant’s existence,
> didn’t anyone notice a tenant during the showing or inspection?  Not that
> it matters for practical purposes anymore at this stage.
>
>
>
> Often a saavy landlord/seller can arrange an accommodation with a tenant
> to terminate a lease early, such as helping to pay moving expenses or first
> & last month’s rent at a new rental.  However, usually that is going to
> need to be done at least 30 days or more in advance, especially in this
> extremely tight rental market.
>
>
>
> Tara M. Roberts
>
> Puget Sound Law pllc
>
> roberts at pugetsoundlaw.com
>
>
>
>
> ******************************
> The information contained in this email is intended as a collegial
> exchange of ideas, may be incorrect, and is made without warranty of
> accuracy of any kind.  The ideas and opinions expressed in this message are
> offered as unresearched thoughts, may be retracted or changed without
> notice, and do not create any attorney-client relationship.  They should
> not be relied upon as applicable to any particular fact situation. Thank
> you.
> ******************************
>
>
>
>
>
>
>
> *From:* wsbapt-bounces at lists.wsbarppt.com [mailto:
> wsbapt-bounces at lists.wsbarppt.com] *On Behalf Of *Jennifer Sohn
> *Sent:* Friday, May 27, 2016 10:14 AM
> *To:* WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
> *Subject:* Re: [WSBAPT] Closing of home & leasehold
>
>
>
> Thanks, that is my understanding as well. Seller is adamant that the lease
> is always subject to the PSA so I wanted to double check.
>
>
>
> Thanks,
>
>
>
> Jennifer
>
>
> On May 27, 2016, at 9:54 AM, Laird, Katherine <
> KatherineLaird at CenturyPacificLP.com <KatherineLaird at centurypacificlp.com>>
> wrote:
>
> Unless the tenancy is month to month (sounds like it is not), the tenant
> has the contractual right to remain in the property until the end of the
> lease (assuming no lease default).  The seller will be default under the
> PSA if they are unable to deliver possession.
>
>
>
> Katherine Kramer Laird
> CenturyPacific,LLLP
> Suite 1680
> 1201 Third Avenue
> Seattle, WA  98101
> Ph. 206-757-8892/Mobile. 206-915-0109
> Fax 206-757-7890
> katherinelaird at centurypacificlp.com
>
>
>
>
>
> *From:* wsbapt-bounces at lists.wsbarppt.com [
> mailto:wsbapt-bounces at lists.wsbarppt.com
> <wsbapt-bounces at lists.wsbarppt.com>] *On Behalf Of *Jennifer Sohn
> *Sent:* Friday, May 27, 2016 9:46 AM
> *To:* WSBA Probate & Trust Listserv
> *Subject:* [WSBAPT] Closing of home & leasehold
>
>
>
> Hi, I have someone who signed a purchase and sale agreement (the standard
> MLS form) to purchase a home and to get possession on closing. We are less
> than a week away from closing and we learned that the lease for the tenant
> at the home does not expire for another month. "Possession on closing"
> means the seller needs to make sure the tenant is out of there by closing -
> right?
>
>
>
>
> --
>
> Best regards,
>
>
>
> Jennifer Y. Sohn
>
> Attorney at Law
>
> (Licensed in CA and WA)
>
> Sohn Law PLLC
>
> 10900 NE 4th Street, Suite 1850
>
> Bellevue, WA 98004
>
> Tel: 425.522.3861
>
> Fax: 425.732.9748
>
> Email: jennifer at sohn-law.com
>
> http://www.sohn-law.com
>
>
>
> Confidential. This electronic mail transmission and any accompanying
> documents contain information belonging to the sender which may be
> confidential and legally privileged. This information is intended only for
> the use of the individual or entity to whom this electronic mail
> transmission was sent as indicated above. If you are not the intended
> recipient, any disclosure, copying, distribution, or action taken in
> reliance on the contents of the information contained in this transmission
> is strictly prohibited. If you have received this transmission in error,
> please delete the message. Thank you.
>
>
>
> Circular 230 Disclaimer. Any U.S. federal tax advice contained in this
> communication (including any attachments) is not intended or written to be
> used, and may not be used, for the purpose of (i) avoiding penalties under
> the internal revenue code or (ii) promoting, marketing or recommending to
> another party any transaction or matter addressed herein.
>
> _______________________________________________
> WSBAPT mailing list
> WSBAPT at lists.wsbarppt.com
> http://mailman.fsr.com/mailman/listinfo/wsbapt
>
>
> _______________________________________________
> WSBAPT mailing list
> WSBAPT at lists.wsbarppt.com
> http://mailman.fsr.com/mailman/listinfo/wsbapt
>

-- 

Best regards,

Jennifer Y. Sohn

Attorney at Law

(Licensed in CA and WA)

Sohn Law PLLC

10900 NE 4th Street, Suite 1850

Bellevue, WA 98004

Tel: 425.522.3861

Fax: 425.732.9748

Email: jennifer at sohn-law.com

http://www.sohn-law.com

Confidential. This electronic mail transmission and any accompanying
documents contain information belonging to the sender which may be
confidential and legally privileged. This information is intended only for
the use of the individual or entity to whom this electronic mail
transmission was sent as indicated above. If you are not the intended
recipient, any disclosure, copying, distribution, or action taken in
reliance on the contents of the information contained in this transmission
is strictly prohibited. If you have received this transmission in error,
please delete the message. Thank you.

Circular 230 Disclaimer. Any U.S. federal tax advice contained in this
communication (including any attachments) is not intended or written to be
used, and may not be used, for the purpose of (i) avoiding penalties under
the internal revenue code or (ii) promoting, marketing or recommending to
another party any transaction or matter addressed herein.
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20160527/1cbef381/attachment.html>