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Closing on a Tenant-Occupied Property? Here are some quick tips



An owner wants to sell an investment home occupied by tenants. While this impacts a number of transaction details, the first step is a full discussion with the owner: Is there a lease? What does it say? Are the tenants onboard with the plan?


Addendum W: If you’re using the Florida Realtors Contract for Residential Sale and Purchase (CRSP), you must use and attach addendum “W. Rentals.”


Standard 18 (D): The Seller must provide Buyer with the Tenant's Estoppel Letter which specify the nature and duration of occupancy, including rental rates.


Advance Rent & Security Deposit(s): At the closing, the seller must be prepared to transfer advanced payments/deposits to the buyer.


Assignment of Lease: Lastly, the seller must deliver and assign all leases to the buyer, who then assumes the lease(s) and the position of landlord.


Reprinted with permission ©Florida Realtors®. All rights reserved.

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