What Every Selling Agent Must Put In The Contract
Many of you have handled a transaction involving an investment property. And as you know there are a number of contract issues that you must address that are not involved with the closing of a primary residence. I wanted to use this post to put all of those issues into one article. Now every deal is different, but the issues below are fairly common for any occupied investment property.
You should include a requirement in the contract that the seller will provide a full copy of the lease within three days of the Binding Agreement Date. Why is this so important? Your client needs to make sure he or she is comfortable with the terms of the lease (i.e., rental rate, lease term, etc.). At closing the lease will be assigned from the seller to the buyer effectively making the buyer the new landlord. If the lease terms are not favorable based on your client’s investment goals you will want to make this determination during due diligence so your client can terminate the contract.