Deposits after sale
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Deposits after sale (by Joe [MA]) Oct 12, 2017 6:52 AM
       Deposits after sale (by Vee [OH]) Oct 12, 2017 7:00 AM
       Deposits after sale (by S i d [MO]) Oct 12, 2017 7:58 AM
       Deposits after sale (by Joe [MA]) Oct 12, 2017 8:00 AM
       Deposits after sale (by Nicole [PA]) Oct 12, 2017 9:50 AM
       Deposits after sale (by Johnny B. [MA]) Oct 12, 2017 12:17 PM
       Deposits after sale (by JAC [OH]) Oct 12, 2017 12:48 PM
       Deposits after sale (by TenantWhisperer [MA]) Oct 12, 2017 5:25 PM
       Deposits after sale (by Joe [MA]) Oct 12, 2017 5:45 PM
       Deposits after sale (by DJ [VA]) Oct 12, 2017 8:22 PM

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Deposits after sale (by Joe [MA]) Posted on: Oct 12, 2017 6:52 AM
Message:

I'm selling one of my multis. It's a 6 unit building and I have last month rent deposit for 4 of the units. The other 2 tenants I inherited from the prior owner and do not have a last month's rent from them. How do I go about transferring the deposits I do have to the buyer? Should it be part of the closing documents? Do I just write a separate check at the closing table? How do I notify the tenants that I've transferred their deposit to someone else?

--170.63.xx.xxx




Deposits after sale (by Vee [OH]) Posted on: Oct 12, 2017 7:00 AM
Message:

Estoppal paper each tenant signs who owns what appliances, what storage, parking, and deposits --76.188.xxx.xx




Deposits after sale (by S i d [MO]) Posted on: Oct 12, 2017 7:58 AM
Message:

Unless Buyer and Seller negotiate otherwise, a credit for the deposit will appear on the HUD settlement statement as a credit toward the Buyer's share of the settlement costs. To be clear, though, the OBLIGATION of the deposit always transfers, even if the Buyer elects not to receive a credit on the settlement costs.

A wise Buyer will contact tenants PRIOR to closing and make sure they understand what the changes are and what is staying the same. Basically, nothing changes except the name on the rent payment and the location where payments/deposits are held. The estoppel letter is a wise, but not required, step of laying out the ground rules and expectations.

Bottom line: the tenant never loses their right to return of deposit less any valid deductions. --173.19.xx.xxx




Deposits after sale (by Joe [MA]) Posted on: Oct 12, 2017 8:00 AM
Message:

At first I thought that was a typo, but I Googled it to look less stupid lol. Never heard of it. Interesting.

--170.63.xx.xxx




Deposits after sale (by Nicole [PA]) Posted on: Oct 12, 2017 9:50 AM
Message:

most lenders will not allow these to be transferred through the closing.... it's a separate transaction between buyer and seller. you write the buyer a check outside of the closing. when I've bought occupied units, the seller always took me around and introduced me. I always prepare a letter that says good bye from old landlord and hello from me, new landlord.

I agree that some type documentation needs to be presented to buyer signed by tenants and seller agreeing to monies, fixtures, any special arrangements, transfer of current lease, etc. --72.95.xx.xxx




Deposits after sale (by Johnny B. [MA]) Posted on: Oct 12, 2017 12:17 PM
Message:

This money is separate from the closing documents. Coordinate the amount owned and write the buyer a check, including any interest on the deposits. --97.35.x.xx




Deposits after sale (by JAC [OH]) Posted on: Oct 12, 2017 12:48 PM
Message:

Mine was a FSBO purchased without a real estate agent involved. I sent an email a couple weeks before closing stating I wanted the check for the last 6 months of taxes and deposits. He stated there were only 3 deposits out of 4 tenants. I agreed that was OK. He cut a separate check at the closing. --74.83.xx.xxx




Deposits after sale (by TenantWhisperer [MA]) Posted on: Oct 12, 2017 5:25 PM
Message:

I just sold a multi in MA

I handled it at the closing table as a separate check and a spreadsheet as to how much goes to each tenant. It did not show up on the settlement sheet.

I then followed it up with a letter to each tenant telling them their LMR of $$$ was transferred to the new owner on xx/xx/xx.

--73.16.xxx.x




Deposits after sale (by Joe [MA]) Posted on: Oct 12, 2017 5:45 PM
Message:

Thanks everyone --97.81.xx.xx




Deposits after sale (by DJ [VA]) Posted on: Oct 12, 2017 8:22 PM
Message:

I just received deposit money from the seller on a HUD-1 at purchase. --68.105.xxx.xxx



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