Inheritted a rental home

[dziller]

What is the name of your state? Indiana

My grandmother passed away in early November, she left one of the homes she owned to 4 of her grandchildren. Prior to her death, her POA signed a lease to rent the house. We did this because she was put in an assisted living home and the rent income was used to supplement the cost for her care. Because it wasn't my grandmother who signed the lease, but my sister who was acting as her power of attorney, is the lease still valid? or does it become void after my grandmothers death? Me and my 3 other siblings are to inherit the house now, and the executor(my dad) was advised by the lawyer to change the deed of the home into our names at the first of the year. This way her estate won't have to pay anymore taxes for the coming year or repairs to the house. My issue is that the four of us would like to sell the home, but the renters lease is not up until Oct 2007. I don't want to hold onto the home for this long, what are my options? The Estate lawyer says that the lease is still valid and if we sell it we have to sell the home as a rental. I am having difficulty with this because technically after my grandmother passes on the POA does not have legal rights, correct? And if the home changes owners why do we have to take on the responsibility of the lease? Any advice or help is GREATLY appreciated!

[seniorjudge]

Q: Because it wasn't my grandmother who signed the lease, but my sister who was acting as her power of attorney, is the lease still valid?

A: Yes (but see next answer).


Q: or does it become void after my grandmothers death?

A: It depends on the terms of the lease. For example, if the written lease says, "When grandma passes, this lease is no good," then when grandma passed, the lease was no longer good.



Q: I don't want to hold onto the home for this long, what are my options?

A: Pay the renters enough to leave.


Q: The Estate lawyer says that the lease is still valid and if we sell it we have to sell the home as a rental. I am having difficulty with this because technically after my grandmother passes on the POA does not have legal rights, correct?

A: Sounds like you had the answer to this question when you posted it.


Q: And if the home changes owners why do we have to take on the responsibility of the lease?

A: Because you now own it.

[lcannister]

Barring language in the lease as outlined by SJ above you are part owner of a rental property. The tenants have a lease and you must abide by the terms and expiration unless the tenants choose to move out early because of your request.

Put the home up for sell and market it as a rental property and you maybe able to sell it to an investor who doesn't care if he/she has to wait out a lease agreement. But if you sell it at this point the buyer must adhere to the rental agreement or as SJ said buy you/them out.

[FarmerJ]

If your that anxious to be rid of the property why not encourage the tenant to look into first time home buyer programs and then make you a offer on the house . If the tenant doesnt want to bother , too bad they will just end up with a new LL when its sold. You might actually be surprised and learn that the tenant might actually like the home and its location enough to be willing to carry thru and buy it.