renting a condo that's not yet closed

[lightniter]

What is the name of your state? California

I answered a rental listing for a condo and it was perfect (I wanted to rent it). The only caveat is that the condo isn't closing for another 2 weeks (ie, my future landlord is officially the owner yet). The guy who showed the condo to me is a property manager and seems to be the middleman for my future landlord, whom I've never met or spoken to (but I intend to get her contact info). I couldn't find any info on the web for situations such as this: renters who want to rent from a landlord who hasn't completely closed on the condo. Granted, I'd move in after she closes, of course but I don't understand why they would start looking for a tenant before closing but maybe they didn't expect to find someone so soon?

What are my rights in this situation? I know I will not be writing any checks until it closes. If the condo closes with no glitch, then I'm fine. but I know nothing's set in stone til it closes. So shouold I not sign any lease until then? Am I asking to be screwed over?

 

[HomeGuru]

What is the name of your state? California

I answered a rental listing for a condo and it was perfect (I wanted to rent it). The only caveat is that the condo isn't closing for another 2 weeks (ie, my future landlord is officially the owner yet). The guy who showed the condo to me is a property manager and seems to be the middleman for my future landlord, whom I've never met or spoken to (but I intend to get her contact info). I couldn't find any info on the web for situations such as this: renters who want to rent from a landlord who hasn't completely closed on the condo. Granted, I'd move in after she closes, of course but I don't understand why they would start looking for a tenant before closing but maybe they didn't expect to find someone so soon?


**A: it is so that the owner's losses are less. Think about it. The owner has to pay mortgage, insurance, property taxes, maintenance fees etc. The sooner the palce is rented, the rent can help offset expenses.

**********
What are my rights in this situation? I know I will not be writing any checks until it closes. If the condo closes with no glitch, then I'm fine. but I know nothing's set in stone til it closes. So shouold I not sign any lease until then? Am I asking to be screwed over?

**A: you can sign a lease but occupancy and rent starts after closing.

 

[lightniter]

reply

Thanks for your quick reply.

I know occupancy and rent will start after closing but do you think signing a lease before the closing is a bad move? Or is the lease merely nulled if the closing doesn't go as planned?

 

[HomeGuru]

Thanks for your quick reply.

I know occupancy and rent will start after closing but do you think signing a lease before the closing is a bad move?

**A: no, not if the rent is low and the place is in a good location and palacious.

**********

Or is the lease merely nulled if the closing doesn't go as planned?

**A: if closing does not occur, the lease would be deemed unenforceable for the mere fact that L would not be an owner of the property. Real property laws dictate that one can not rent a property one does not legally own. Makes sense right?

 

[lightniter]

thanks!

ok, thanks for the reassurance. i'm glad for a resource such as this website with real-time replies. much appreciated!

 

[HomeGuru]

ok, thanks for the reassurance. i'm glad for a resource such as this website with real-time replies. much appreciated!

**A: and best of all, it's free. Outstanding advice. Unbeatable price.

 

[LindaP777]

I do the same thing myself ~ show properties I have not yet closed on to prospective tenants, in the hopes of lining something up. If the tenant want the house, I accept a "holding deposit". If the tenant is not found acceptable, or for some weird reason the closing does not happen, the holding deposit is returned in full. Make sure there is a move in by date on the holding deposit, so if the closing is delayed longer than you are willing to wait, you can get your money back.

 

[Ohiogal]

Thanks for your quick reply.

I know occupancy and rent will start after closing but do you think signing a lease before the closing is a bad move? Or is the lease merely nulled if the closing doesn't go as planned?

Sign nothing until the landlord owns the property and can actually rent it to you.

 

[LindaP777]

Sign nothing until the landlord owns the property and can actually rent it to you.

They certainly can do that to be on the safe side, but they risk losing the condo to someone else who will sign.
(Again, I would sign a "holding deposit" not a lease. You have no idea the beginning date of the term if the LL does not own the property, yet, so I don't know how a lease could even be written.)