Lease survives the sale of property and is binding to next owner
Q: I’m trying to sell a house that is currently occupied with a lease that expires next year. Prospective buyers are asking if they would be able to move in this summer, or whether they have to honor the existing lease agreement and allow the tenants to stay. What are the laws around this issue? — J.
a: The rule is that a lease “survives the sale” and is as binding on the next owner as it is on the present one. At some point you — or prospective buyers — might try to negotiate a compromise with the tenants. propErty lost monEy
Q: I sold a two-family home and took back the mortgage eight years ago. At the time, the real estate market was fine and the borrower had plenty of money. We all thought it was a win-win situation for everyone. He paid faithfully for eight years. Over time, he got some bad business advice and was not very smart about renting and getting security deposits, etc.
Fast forward to this year, and he has filed bankruptcy and I am foreclosing on the property. His bankruptcy is finished and the foreclosure sale is occurring this month. I don’t want this property back, but he has let it deteriorate to the point where no one else will either.
I really don’t want to dump a bunch more money into it, but I don’t think I can sell it as it is, if I get it back. It has devalued over the years to about half of what it was worth when I sold it to him. Any suggestions or ideas? — P.C.
a: Anything will sell if the price is right. You may just have to accept the fact that some investments don’t pan out, some lose money, and not everyone can be a successful landlord. sEll, buy, build?
Q: We are retired and live in an old but updated farmhouse on 30 acres. We think it is time to downsize, and aren’t sure where to start since there are several options: sell the house with some land and build on remaining land; sell and buy an existing house (or one in new development), or buy a plot and custom build. I know we need to get a rough market value on the current home, determine if/how it could be sub-divided if we keep some land, etc. Do we start by interviewing real estate agents? — via askedith.com
a: That’s exactly the right place to start, because you do need an estimate of possible sale price for your home and land. Brokers who are active in your area may have information and advice about the other options you’re considering as well.
You can research local subdivision and building requirements for yourselves at town or county offices, or ask your lawyer to do it. When you have more in- formation, it’ll be easier to narrow down your choices.
CREATORS.COM
Vacant two yEars
Q: I’m interested in a home that has been vacant in a nice area for two years. Was told by the town hall that it may be in foreclosure. How do I go about finding information on this home? — R. P., via askedith.com
a: The county’s public records, which anyone can examine, should give you the name of the owner, the name of the mortgage lender and any other information that has been filed about the property. You can search online or in person at the records office. Then you can contact the parties yourself. It may be more efficient, though, to ask a real estate broker to investigate. Edith Lank will respond personally to any question sent to www.askedith.com or to 240 Hemingway Drive, Rochester NY 14620.