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Buying or Selling a Home/Do security and first months rent get re-assigned when buying property?

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Expert: John Hendricks - 12/19/2007


Question
My husband and are looking to buy a multifamily property in NH.  I'm curious if we are planning to keep the current tenants, do the security deposit and first months rent get re-assigned to us, assuming those were both collected, when we buy the property?

Answer
Dear Maryann;

Thank you for your question. Yes absolutely you should have a credit from the Seller in escrow that equals the total amount of deposits being held; this would include rents collected, or uncollected which would be prorated based on the close of escrow, plus security & pet deposits.

I would also recommend that you have your Realtor add to the contract if the provision is not already provided for, a condition that the seller will provide you completed estoppel certificates by each tenant. This document is designed to make sure that you are completely aware at least from the tenants point of view the deposits and rents being held by the Seller. Compare the certificates with what the Seller is reporting and if there is a discrepancy, don’t release your contingencies until those figures match.  Also look for hidden promises by the Seller to the tenant. After escrow closes, if the tenant was to say the seller said this when I leave, you may be the responsible party to care of the problem. Then you would have to go after the Seller for lack of disclosure to rectify the situation.

If you have not employed a Realtor to work with as of this moment, email or call me with your contact information. I have a number of quality Realtors who specialize in income properties throughout the country. This is a business investment and as such, you should have the best representation you can have on your behalf.

I am a California Realtor and not familiar with NH laws and regulations. I would highly recommend you seek counsel from either a Realtor or a real estate attorney to protect your interests in your investment.

Have a great holiday season…

Warmest Regards;
John Hendricks
415-259-4518
JohnHendricks@Marin1.com

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John Hendricks

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As a California Realtor for 23 years practicing in Marin and Sonoma Counties, it is now time to provide counsel through AllExperts.com to those who need advise in real estate. My knowledge and experience includes a wide range of resale residential real estate purchases, new home sales, income related investment properties involved in 1031 exchanges, and land. Let me help you in any of these areas...

Experience

John Hendricks has established himself as one of Marin & Sonoma Counties premier Realtors. A native Californian, John is a well-known and respected Realtor in both Marin & Sonoma Counties who has resided in the Northbay since 1976. John began his real estate career in 1986, and since then has distinguished himself as one or Northern California's top producing Realtors. Before joining Frank Howard Allen Realtors, John was an associate of the Prudential California Realty from 1990-1992 where his outstanding sales achievements earned him one of the company's highest honors, the prestigious "President's Circle Membership", presented to the top 2% of associates for sales and earning excellence. Since his association with the highly regarded Frank Howard Allen Realtors in 1992, John has once again established himself as one of his company's Top 10 Producing Realtors in Marin & Sonoma Counties for the years 1993 through 2007 and now in 2008. Five continuous years of outstanding performance has now allowed John to join 15 other Realtors in the prestigious "Lifetime Hall of Fame" for Frank Howard Allen Realtors. John established a group of professional individuals who specialize in a variety of areas in real estate called, 'Lundmark-Hendricks Fine Homes' This group of professionals are dedicated to the success of representing clients with the greatest amount of care and service when either buying or selling real estate.

Organizations
California Association of Realtors National Association of Realtors

Education/Credentials
Upon Request...

Awards and Honors
Frank Howard Allen Realtors "Hall of Fame Member" Chairman's Circle for 10 consecutive years

Past/Present Clients
Joe Louis & Sharon Sigurdson We want to thank you again for your excellent representation of interests during the recent purchase of our home in Petaluma as well as the sell of our home in Mill Valley. We had the unusual pleasure of working with you during the last year both as sellers and buyers. We felt that our interests were always paramount and that we received a very fair price for the sale of the Mill Valley house as well as our purchase of our new home. This speaks particularly well of you, because of the recent unstable and chaotic real estate market. Will Finke "Quite frankly, we came out of a very difficult situation, which time does not allow elaborating on. This was one of the greatest experiences of our lives as clients. John Hendricks is one of the top businessmen I have ever met." Bruce & Nancy Rosentreter "I chose John Hendricks to sell my house. I picked him because I thought he was professional, aggressive, and that he could get top dollar for my house. He fulfilled my expectations completely." Joy Schuelke "Since we were trying to sell a high end home in a very tough market, and in the middle of a very rainy winter, the prospects seemed quite bleak. I was convinced at the time, and am even more so now, that without John's tenure, patience, and tenacity, we would have not been able to move the property." Lynn McCarthy "I cannot stress strongly enough how impressed I was with the service provided to me by John and his group. Throughout the entire transaction, John was always available, always forthcoming with excellent advice based on his years of experience, and always willing to put in the extra effort to make this a positive experience for me. I feel lucky to have had the experience of working with him." Lea Lieurance-Turk "Thank you John for your outstanding real estate services for the past 5 years I have known you. You have made my dreams come true as far as selling and buying property."
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