Seller Witholding Tenant Info.
The seller and I signed the contract. I placed 1K deposit. In the contract, it stated the seller must fully disclosed all info regarding the property and tenant occupancies. Also, the contract has a written clause "subject to inspection" I have 14 days to do this.
The ad for selling the property stated" 90% unit vacancies, positive cash flow. As it turn out, I asked the seller to disclose the vacancies rate. He does not respond. Last night, I went to the property and spoke to the manager, he told me there are only 20% vacancies. So I did some calculation, the current vacancies only able to pay for water and trash. I need to come up with a large amount for the monthly mortgage.
Do I have a chance to get my 1K back..minus 100 bucks I promised him if I back out within 14 days?
Thanks.
Only 20% rented. 80% is empty space.
This might be a great negotiating tool. Tell the owner that you know that there are 80% vacancies and that the income was greatly over stated. Based on the 80% vacancies the income is ???? and you need to buy based on that number.
You should look for properties that you can buy, and then increase the occupancy or increase the rent. You want to buy at a discount and then increase the value of the property. This might be a great opportunity, if you buy it right.
Brenda
You have at least 2 problems you need to get legal
advice on: 1st, a divorse atty.- regarding the poss. illegal transfer of the property and your exposure to it as you are a party to the transaction- be it unknown or not by you. 2nd, a real estate atty. - as to checking your rights/requirements involving the property. Then comes the acct. for the tax exposure. Mark
Thanks for the feedback. I am meeting with a real estate/tax attorney next week.